Category: Transport

  • Rebuilding Vehicle Manufacturing in Australia

    Rebuilding Vehicle Manufacturing in Australia

    Industrial Opportunities in an Electrified Future
    by Mark Dean

    Global automotive manufacturing is rapidly transitioning to the production of Electric Vehicles (EVs) in line with technological advancements and the global community’s commitment to addressing climate change. This transition presents an enormous opportunity for Australia to rebuild its vehicle manufacturing industry, taking advantage of our competitive strengths in renewable energy, extractive industries, manufacturing capabilities, and skilled workers.

    Australia possesses many of the crucial elements for an EV manufacturing industry: rich mineral reserves, an advanced industrial base, a highly skilled workforce, and consumer interest. But what it lacks is an overarching, coordinating and strategic national industry policy. Global experience shows that this is central to EV-oriented industrial transformation. Australia can play an important role in global EV manufacturing industries but developing a strategy to realise this will require active government policy responses to both the challenges and opportunities at hand.

    Australia’s natural resource endowments and industrial capabilities make EV industry development a viable economic and social strategy. Our moral obligations to create a sustainable future make it essential public policy. This report illustrates how Australia can rebuild a vehicle manufacturing industry, on a sustainable ecological foundation, and meet our international environmental obligations. The report covers several important related dimensions of the issue:

    • How an EV manufacturing strategy can add value to Australia’s existing exports of primary resources – connecting them to innovative, sustainable manufacturing industries;
    • Developing supply and value chain linkages to the global EV industry by increasing the capability for innovation and advanced manufacturing amongst small and medium-sized enterprises;
    • The central role of Australia’s education systems in delivering sustainable industry-focused training and skills development, to provide workers with career pathways shaped by lifelong access to education and learning;
    • How active government intervention can coordinate economic sectors in an innovative and strategically oriented industry policy driving sustainable economic and technological transformation; and
    • Understanding the importance of automotive manufacturing to our industrial future, its role in redesigning transport systems, investing in new technology and gearing production systems to meet social and environmental requirements.

    To make the case for a national EV manufacturing policy, this paper reviews existing literature and presents relevant data to show that an EV industry in Australia is not just desirable – but it can also lead the sustainable transformation of Australia’s economy.

    The paper is arranged as follows. The next section provides an overview of the Australian national EV policy landscape and the international context, to identify trends and opportunities in EV manufacturing.

    The bulk of the paper is then dedicated to reviewing four key ‘Building Blocks’ of an industry policy: the resources sector, skilled labour, supply chain capabilities and capital assets, and the capacity of government to develop a policy response that assembles these key elements as the foundation for rebuilding Australian manufacturing with EVs at the centre.

    In mapping this foundation of an EV manufacturing policy, the subsequent section cautions that an EV industry is not a panacea for addressing the broader climate crisis and creating a sustainable economy. It argues, however, that a sustainable EV industry should be considered as a major driver of industrial transformation alongside other positive cultural and environmental changes within Australian society.

    The conclusion summarises the paper’s overarching theme that Australia can build a strong EV manufacturing industry with the right policy settings and government actions. It makes several specific recommendations to get the ball rolling on developing these settings – including recommendations touching on industry planning, energy requirements, consumer demand, resource use, supply chain developments, skills and training, and government support.



    Full report

    Share

  • The Future of Transportation Work: Special Series, WA Transport

    The Future of Transportation Work: Special Series, WA Transport

    by Jim Stanford and Matt Grudnoff

    A special 6-part series of short articles from WA Transport Magazine:

    Researchers have identified the transportation industry as one of the sectors likely to be most affected by the coming implementation of new technologies: such as self-driving vehicles, artificial intelligence, and automated logistics systems. How will transportation workers fare as these technologies are rolled out, and what measures can be taken – by employers, governments, unions, educational institutions, and other stakeholders – to ease the transitions?

    Earlier this year the Centre for Future Work completed a comprehensive review of factors influencing the future of work in transportation industries, commissioned by TWUSUPER (the main industry super fund serving the transportation sector). The report (co-authored by Jim Stanford and Matt Grudnoff) concluded that technology is not the only factor transforming work in transportation; in fact, if anything, accelerating changes in the nature of employment relationships (including the spread of independent contractor roles, “gigs”, and other forms of insecure work) are having a bigger immediate impact. Moreover, with appropriate planning, consultation, negotiation, and investments in training and adjustment, the employment impacts of new technology could clearly be managed without undue harm or displacement – but only if all stakeholders commit to an inclusive, collaborative process of planning and adjustment.

    In the wake of our report, the industry journal WA Transport has published a very readable compendium of short articles, each exploring a different aspect of our report.

    With the kind permission of WA Transport, we reprint those articles here. Together they are a useful resource for leaders and educators in the transportation industry.

    Part I: The Economic Importance of Transportation

    Part II: Transportation Work Today

    Part III: Twin Drivers of Change

    Part IV: Applications of New Technology in Transportation

    Part V: Work Organisation and Employment Relationships

    Part VI: Change Scenarios and Policy Implications

    We thank TWUSUPER for the opportunity to undertake this research, and WA Transport for publishing this series of articles.



    Part I: The Economic Importance of Transportation



    Part II: Transportation Work Today



    Part III: Twin Drivers of Change



    Part IV: Applications of New Technology in Transportation



    Part V: Work Organisation and Employment Relationships



    Part VI: Change Scenarios and Policy Implications

    Share

  • The future of transportation work: Technology, work organization, and the quality of jobs

    The future of transportation work: Technology, work organization, and the quality of jobs

    by Jim Stanford and Matt Grudnoff

    Workers in all parts of the economy are confronting twin threats from accelerating changes in technology and automation, and the ongoing shift toward more precarious and irregular forms of work — including “gigs” on digital platforms.  The transportation sector is widely acknowledged to be one of the most susceptible to both of these trends.  The Centre for Future Work has published a major new research report on these trends, and how sector stakeholders can best prepare for the coming changes.

    The report was commissioned by TWUSUPER (the main industry superannuation fund in Australia’s transportation sector).  It describes the current size and economic importance of the transportation industry, and provides a detailed profile of its existing workforce.  In then considers twin drivers of change buffeting the industry: changes in technology, and changes in work organisation and employment relationships.  The report stresses the importance of distinguishing between these factors, lest observers accept a misplaced sense of “technological determinism” regarding the evolution of work and jobs.  The report concludes that the erosion of job quality and stability associated with the growth of non-standard work poses a greater challenge to quality transportation jobs, than the much-hyped advent of driverless vehicles and other technological breakthroughs.

    The report concludes with several key recommendations for transportation stakeholders to assist in preparing for these changes, and managing them so as to maximise their benefits and minimise their costs.  These include:

    1. Facilitating Mobility: There will be significant new work associated with the advent of new transportation technologies. An obvious response is to assist existing workers to fill new positions by providing notice, support, and access to training and adjustment programs. Financial support from employers and governments will be necessary. Training and adjustment programs need to take account of the advanced age of many transportation workers, and tailor offerings to fit needs of older workers with less formal qualifications.
    2. Establishing Benchmarks for Skills and Qualifications: New technology-intensive jobs will require a wide-ranging suite of new skills – including design, programming, operation, data management, and more. Specific requirements and qualifications for those skills must be formalized and regulated. Sector stakeholders should work closely with existing bodies (such as Australian Industry Standards, TAFEs, and others) to specify and catalogue requirements for new jobs. Transferable certifications will assist workers and employers to identify and acquire needed skill sets, and develop a ready supply of qualified, flexible workers. Strengthening high-quality apprenticeships is also critical.
    3. Facilitating Decent Retirement: The advanced age of many transportation workers is an advantage in a time of transition. Downsizing or restructuring can be managed in part by facilitating exit by workers not interested or able to undertake retraining and adjustment. Bridging benefits and early retirement incentives, with government support, ease the transition, and avoid involuntary job losses that would otherwise occur.
    4. Negotiating Technological Change: Adaptation is more successful when all parties have a genuine say in how it is implemented and managed. Transportation stakeholders must commit to information sharing, consultation, and negotiation over technological change. Workers and their unions should be notified of plans for new technologies. Discussions should occur regarding timing, scope, and effects of new investments. Opportunities should be provided for early input from workers regarding how change will be managed; collective bargaining should include the terms of technology and its application.
    5. Building Consensus: Sector needs a multi-partite, sector-wide approach to analysing challenges and developing inclusive sector-wide responses. Undertake social dialogue among industry participants to maximise benefits of change, reduce costs – and share both costs and benefits fairly. Multi-partite forums (engaging business, workers and their unions, government, regulators, training institutions, financial institutions, and others) will help build relationships among stakeholders, identify future needs, and imagine and implement initiatives to facilitate necessary investments and adjustments.
    6. Protecting Standards and Benefits: Changes in work organisation and employment relationships are changing transportation jobs and challenging traditional standards of security, entitlements, and compensation. The use of non-standard employment forms (like contractors and labour hire) imposes unsustainable consequences on workers who are denied stable, decent opportunity. Traditional standards and entitlements should apply to all transportation workers, including in non-standard, independent, or “gig” situations. Regulatory benchmarks and corporate accountability should apply across the supply chain.



    Summary Report



    Full report

    Share