Working hours at Holden?s Adelaide assembly operations will be cut back from May. The afternoon shift will be dropped and the morning shift will be split between two teams working one week on and one week off.
The move comes as a result of the slowdown in sales and has been put in place as an alternative to layoffs.
Afternoon shift workers were advised of the company?s decision on Thursday night. At this stage, the plan is expected to be in place until the end of the year.
Spokesman Scott Whiffin said Holden believed the decision was the best way to deal with the global economic crisis, and that workers would be receiving half their normal wages as part of the plan.
The cuts to working hours forms part of a move to align production with demand, as well as to allow the company to shift unsold inventory.
More details will be announced by Holden Chairman and Managing Director Mark Reuss shortly.