Union Hand On The Wheel Doomed Ford

Ken Phillips, a member of the HR Nicholls Society Board of Management, was published yesterday in the Business Spectator on how the Union Movement doomed Ford in Australia:

There’s more to the Ford closure story than at first appears.

In fact, there’s a monster truck crashing over the bonnets of the car manufacturing industry in Australia.  Unfortunately, no one seems capable of stopping its destructive progress. Sitting in the driver’s seat are Australia’s manufacturing unions shouting loud about ‘workers’ rights’.  These unions share a big part of the blame for the industry’s progressive decline and job losses.

Certainly the high Australian dollar, intense international competition and failure to make cars that people want to buy are dominant reasons for the industry’s problems. None of these can be addressed if managers of car plants can’t effectively manage.  That’s what’s happened in Australia.

Since 2003 the Institute of Public Affairs has studied industrial relations agreements and how they impact on the capacity of managers to manage.  Ford, for example, has gone backward – in a big way. Read more