There seems no doubt that Australia will see an avalanche of job losses in the months ahead. BHP Billiton has announced the retrenchment of six thousand jobs from it's world workforce - three thousand three hundred of them in Australia.
In some cases this is a matter of trimming production lines that are no longer either relevant or profitable. BlueScope steel is shutting it's tin mill at Port Kembla, leaving eighty jobs in question. Most will be relocated to other sections of the plant - and the company is pressing ahead with the costly relining of it's number five blast furnace in anticipation of an upturn in steel demand in the future.
The tin mill is vintage second world war technology and more modern Asian mills have lower production costs. BlueScope made a wise decision because their product is facing a dwindling market.
Fifty years ago most non-fresh products were sold in tin cans, but today these have been replaced by either frozen products or by the use of plastics and cardboard. That trend can only increase !
It looks like we are facing a jobs massacre in the retail area. Go-Lo and Sam's Warehouse chains have been put into receivership and the closure of a Domayne store sends an ominous message. There are also job losses signalled at the top end of the market with David Jones retrenching workers.
Discount stores are not new. Way back before the second world war speciality shops worked on the principle of no item on sale with a price exceeding sixpence. This concept was based on SPQT - small profit - quick turnover !
Unfortunately job losses send a shiver down the spine of those still employed - and this causes them to shut their wallets.
It then becomes a vicious cycle. As people defer spending because of fear of the unknown future, more stores close their doors and more people join the ranks of the unemployed.
World leaders talk up the prospects of an end to this cyclical downturn, but it seems that the worst is yet to come. The most annoying aspect is that the greedy ones in high places who sent the economy into a downward death spiral are the ones whose lifestyle is least affected.
It seems that " fairness " and " justice " are two words destined to remain poles apart !
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