Thursday D-day for Ford production

Ford is likely to stop production of Falcon and Territory models at its Campbellfield plant on Thursday this week (26/4/2012) following the lockout of workers and management at component supplier CMI Industrial's facility at Campbellfield yesterday.

The lockout, initiated by CMI's landlord as a result of unpaid rent believed to be in the region of $116,000, affects supply of various components including suspension parts and will prevent Ford from continuing building of Falcon and Territory until the dispute is resolved, or an alternative supplier found.

Some reports say a New Zealand company may be able to step in to help fill the gap until the situation is resolved.

Ford has said it will bring some public holiday and other entitlements forward to minimise the burden to workers expected to be moved to forced leave from Thursday.

Not unlike the Aurion launch last week, which coincided with the sacking of 350 Toyota workers, the timing of this latest incident is not ideal for Ford, which is today launching its make-or-break four-cylinder Falcon, the EcoBoost.

It is known that CMI has been under financial pressure for some time and although Ford is said to have injected funds to help it continue its operations, it is reportedly unwilling to lend more assistance.

It has been reported that about 100 CMI employees are being affected by the lockout.

The state government has been talking to CMI to deal with the impasse and may step in with assistance funds to help with a restructure, which would enable continuation of its operations, in turn allowing Ford to continue.

The threat to Ford production follows last week's sacking by Toyota of 350 workers from its Altona plant – an action that has prompted the AMWU to initiate legal action in the Federal Court.

Parts supplier APV went into receivership earlier this month. APV will however continue to trade, with a reduced employee count.

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