By NOEL MURPHY
FRINGE benefits tax changes are set to cost Geelong Ford staff 12 days of work in the next six weeks, the company has revealed.
Further downtime is likely in the lead-up to Christmas as Ford responds to plummeting sales after the Rudd Government’s tax changes.
Ford spokesperson Sinead Phipps confirmed the “down days” to the Independent this week.
“We’ve confirmed there’ll be 12 down days in August and September and we’ve flagged there may need to be more in the fourth quarter,” she said.
“All our down days are a direct response to what’s happening in the market and obviously the market has been affected by the FBT change.”
Ford revealed the down days about the same time it appointed a new international staffer, Graeme Whickman, to head its marketing, sales and service operations in Australia.
Mr Whickman previously spearheaded Ford sales and marketing across Asia, Canada, Africa and the Pacific.
Ford, which recently sacked 600 from its Geelong and Broadmeadows plants and plans to shut down its Australian manufacturing operations late in 2016, is eligible for assistance under a new $200 million auto industry assistance package. Labor announced the package on day one of the official federal election campaign.
“Ford vehicles will be eligible from what we know at moment but we need to see what the proposal is and how it works,” Ms Phipps said.
The FBT-driven downturn would not affect Ford’s plan to continue making cars in Australia until October 2016 “at this stage”, she said.
Liberal candidate for Corio Peter Read slammed the FBT changes “without forewarning or consultation” as “another hit on Geelong’s car industry”.
Australian-made car sales were tipped to fall 20 per cent as a result and the $200 million package was “a Band-Aid on a bullet wound”, he said.
Ford’s Geelong workers are expected to draw on annual leave entitlements to make up pay losses during the coming down days.
Labor’s federal Member for Corio, Richard Marles, had failed to return the Independent’s call for comment on Monday before the paper went to press on Wednesday afternoon.
