Speaker Search

  • Name

Speaker Enquiry

1300 314 788
online enquiry

Toyota job losses are tragic, but overblown

The new world of price competition means the overpaid and under-worked are vulnerable to job losses and it relies on bosses to invest in the best technology to bring costs down, but no boss will do that if the workforce is virtually saying: “We’re not changing, so up your nose with a garden hose!”

Platinum Preview

Cathy Freeman

Cathy Freeman OAM

....an Australian sporting superstar and an Australian icon

Corporal Mark Donaldson

Corporal Mark Donaldson VC

....The Cross Road - a story of life, death and the SAS

Dee Madigan

Dee Madigan

....award winning Creative Director

Steven Joyce

Hon. Steven Joyce

.... highly respected NZ senior minister

Jacinta McDonell

Jacinta McDonell

.... inspirational Anytime Fitness entrepreneur and philathropist

Jordan Borensztajn

Jordana Borensztajn

....comedian, social media trainer, MC and humourist

Urzila Carlson

Urzila Carlson

....multi award winning Stand Up comedian

< Back

By Peter Switzer

I’m sick of the Toyota story dominating the headlines. Like Akio Toyoda who runs the company, he’s moved on and so should we. They have given us three years to sort out the economy, our wages system and to create new industries to employ those Aussies who lose work.

Anyone who thinks our silly, internationally laughed at work practices did not contribute to Toyota leaving is an ostrich bordering on a dope, or a Labor politician who has to defend their friends and supporters in the union movement.

Note I think it’s tragic that people lose their jobs and small businesses will be affected, but this industry was rejected by Aussies who don’t buy local cars. Even BMW now sells cars in the price range of middle-class Australia with an entry price around $35,000!

New world

The new world of price competition means the overpaid and under-worked are vulnerable to job losses and it relies on bosses to invest in the best technology to bring costs down, but no boss will do that if the workforce is virtually saying: “We’re not changing, so up your nose with a garden hose!”

The Abbott Government can’t keep these sorts of businesses alive, but it has to encourage the businesses of the future where the new jobs will come from, and yesterday’s corporate results show that there are many businesses on the up.

On Wall Street

Before a quick look at that, let’s just have a look at Wall Street’s efforts overnight. The Yanks have kept it nearly positive overnight with small falls on the Dow — down 30.83 points — and the S&P 500, while the Nasdaq actually went up 0.24 per cent, so our five-day winning streak could easily keep going especially given the good news we saw yesterday.

Yes that’s right, despite what you’re seeing on TV about the bad news around Toyota and the related job losses, which could still be three years away, there has been some really good news, which should bode well for the future.

Sure there was some bad news here with the Westpac read on consumer sentiment down three per cent to a nine-month low, but it was still in optimistic territory, and why wouldn’t consumers be negative with the job loss headlines around right now. Today we get the latest read on our jobless rate but you do have to remember that these numbers reflect what was happening six months or more ago when bosses decided to cut or add jobs. It’s what we call in the economist business a lagged indicator.

The good news

Let’s look at good news to balance up the bad stuff we get fed all of the time:

  • Chinese exports were up 10.6 per cent in December when a rise of 0.1 per cent was tipped and this is a big result for our best customer. Commodity prices went up on the news.
  • Tourist arrivals were up six per cent in December and China provided 58,600 for the month and 726,000 for the year — go China and its middle class expansion!
  • CBA kicked up profit to $4.268 billion, up 14 per cent, Domino’s profit was up 38.8 per cent, Computershare was up 47 per cent and Carsales rose 17 per cent, and these better earnings figures not only help share prices, individual’s wealth and their super funds, but they create job potential as well in these stronger businesses.
  • The US Federal Government ran a $10.4 billion budget deficit in January, against expectations of a $27.5 billion deficit, so yes the Yanks are getting on top of their debt/deficit challenge.
  • European shares rose on with investors encouraged by robust banking results and the hope of rising dividends for the sector. Remember when European banks were seen as secret basket cases.
  • Mining shares were also stronger in London trade with BHP Billiton shares up by 0.7 per cent while Rio Tinto gained 1.4 per cent, which could help our market today.

Move on

I could go on, but I think you have had a damn good dose of things are getting better, and so you don’t have to be negative about the future, despite the fact that there will be losers — there always is! However, with the economic outlook I’m expecting the winners will outnumber the losers, so move on.