Industry group turns to Morphet
Her appointment to the position on Tuesday drew immediate fire from unions but Ms Morphet defended her decision four years ago to sack 1850 workers and move clothing manufacturing to China.
She was chief executive of Pacific Brands - maker of household names including Bonds, King Gee and Hard Yakka - at the time.
"Pacific Brands did need to do what it did," Ms Morphet said. "The company was up against the wall at the time and we had to make decisions to save the company, which we did, and now it's getting on with the job that it's doing."
The national secretary of the Textile, Clothing & Footwear Union, Michele O'Neil, criticised the appointment of Ms Morphet, saying her most notable contribution in the last few years had been to send jobs overseas.
"To say I'm surprised is an understatement ... I'd expect an organisation like Manufacturing Australia to have a strong and passionate advocate for local manufacturing as their leader," Ms O'Neil said. "I find it hard to see how that decision [to move jobs offshore] ... would be credentials for the job."
Both the government and the opposition the slammed the job cuts, which came after the company more than doubled the total paid to top company executives, from $7 million to $15 million. Opposition Treasury spokesman Joe Hockey said then the news was "jarring".
"I'm surprised that the large shareholders in Pacific Brands haven't got something to say about not only the damage to the brand [but] some serious questions about why they had to lay off 1850 workers and still pay executives very significant sums," Mr Hockey said.
On Tuesday Ms Morphet said she believed Australia's manufacturing businesses were being run "as lean as they can be run", and she was comfortable with the high level of wages in Australia.
"We're not looking to change that ... the competitive advantages that we've got are a skilled workforce, abundant energy, and those things should enable us to be successful in spite of the differences that we have between our nation and someone else's," she said.
Her comments followed a decision by MA member CSR to sack 150 workers in western Sydney, citing the high dollar and tough business conditions.
Ms Morphet said she would be in Canberra on Monday to promote the group's new policies, including a new policy centring on Australia's abundant energy resources.
MA represents nine of the country's biggest manufacturers. They are Bluescope Steel, Amcor, Boral, Brickworks, CSR, Incitec Pivot, Rheem, Allied Mills and Capral.
Frequently Asked Questions about this Article…
Sue Morphet is the former chief executive of Pacific Brands who, while in that role, oversaw the sacking of 1,850 workers and the move of clothing manufacturing to China. Her appointment as chairman of lobby group Manufacturing Australia drew immediate criticism from unions and some politicians because those decisions are seen as running jobs offshore rather than supporting local manufacturing.
Manufacturing Australia (MA) is a lobby group representing nine of Australia’s biggest manufacturers. According to the article, MA members include Bluescope Steel, Amcor, Boral, Brickworks, CSR, Incitec Pivot, Rheem, Allied Mills and Capral.
Under Morphet’s leadership Pacific Brands — maker of household names such as Bonds, King Gee and Hard Yakka — cut 1,850 jobs and shifted clothing manufacturing to China. The job cuts were criticised by both the government and the opposition, and opposition Treasury spokesman Joe Hockey also questioned why executive pay more than doubled from $7 million to $15 million at the time.
The national secretary of the Textile, Clothing & Footwear Union, Michele O'Neil, strongly criticised the appointment, saying she expected Manufacturing Australia to have a passionate advocate for local manufacturing and that Morphet’s record of sending jobs overseas made her an inappropriate choice for the role.
Morphet defended the actions at Pacific Brands by saying the company was ‘up against the wall’ and the steps taken were necessary to save it. She also said Australia’s manufacturing businesses are being run as lean as possible, that she is comfortable with the country’s relatively high wages, and that Australia’s competitive advantages include a skilled workforce and abundant energy.
The article notes that MA member CSR sacked 150 workers in western Sydney, with the company citing the high Australian dollar and tough business conditions as reasons for the cuts.
Morphet said she would be in Canberra to promote Manufacturing Australia’s new policies, including a policy emphasising Australia’s abundant energy resources as a competitive advantage for the sector.
The article highlights that leadership changes, high-profile job cuts and executive pay controversies can draw political and union attention and influence public perception of manufacturers. Investors interested in Australian manufacturing may want to note which firms are MA members, follow policy pushes such as energy-related proposals, and watch how currency and business conditions (for example the high dollar cited by CSR) are affecting employment and operations.
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