Derailed : the Social, Economic and Political Implications of the Closure of the Westrail Midland Workshops

Edith Cowan University Research Online Theses : Honours Theses 2000 Derailed : The Social, Economic and Political Implications of the Closure of the Westrail Midland Workshops Lyla D. Elliott Edith Cowan University Follow this and additional works at: https://ro.ecu.edu.au/theses_hons Part of the Work, Economy and Organizations Commons Recommended Citation Elliott, L. D. (2000). Derailed : The Social, Economic and Political Implications of the Closure of the Westrail Midland Workshops. https://ro.ecu.edu.au/theses_hons/863 This Thesis is posted at Research Online. https://ro.ecu.edu.au/theses_hons/863 Edith Cowan University Copyright Warning You may print or download ONE copy of this document for the purpose of your own research or study. The University does not authorize you to copy, communicate or otherwise make available electronically to any other person any copyright material contained on this site. 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EDITH COWANUNIVERSITY LIBRARY "DERAILED" THE SOCIAL, ECONOMIC AND POLITICAL IMPLICATIONS OF THE CLOSURE OF THE WESTRAIL MIDLAND WORKSHOPS by LYLA D. ELLIOTT A Thesis Submitted in Partial Fulfilmentof the Requirements forthe Award of Bachelor of Arts with Honours At the Faculty of Community Services, Education and Social Sciences, Edith Cowan University, Mt. Lawley Campus, W.A. Date of submission: 1 December 2000. 2 ABSTRACT The Westrail Midland Workshops had serviced the WesternAustralian GovernmentRailway fleetfor 90 years when they were closed by the Court Government in 1994. As the State's largest and best equipped industrial establishment employing over 900 workers, the announcement of the closure was unexpectedand controversial. The research questions asked in this thesis are: Why did the Workshops close? What were the economic and political issues involved? What attempts were made to modernisethe Workshops and improve efficiency, and what were the social and economic effectson the workers? The event took place at a time of changing ethos related to public enterprise, which was manifestedin the privatisation of government services and assets. The research was thereforecontextualised within the theoretical frameworkof economic rationalism. The study draws on secondary sources mainly for research related to economic rationalism and the social impact of voluntary redundancy and unemployment. The major part of the evidence supporting this thesis is drawn fromParliamentary debates, Westrail documents and a broad range of primary sources, which include a questionnaire and oral testimony from people who had been closely associated with the Workshops. A study of the history and development of economic rationalism reveals its inexorable progress in Australia and its influenceon governmentsin their dealings with the public sector, including Westrail. It also shows the commercialisation of Westrail, which gathered pace in the 1980s, dictated significantshedding of employees and saw the outsourcing of increasing amounts of its work to the private sector. A central focus of the thesis is the evidence of the steps taken, particularly during the 1980s and early 1990s to upgrade and rationalise the Workshops, eventually achieving Quality Assurance Accreditation and workplace reform with the co-operation of the workforceand the Unions. The study reveals the problems stemming fromthe "Dickensian" culture began to change when occupational health and safety legislation forcedthe establishment of a 3 consultative process between management and the workers. Despite the progress that had been achieved in structural changes and in the human resources at the Workshops, the newly elected Governmentbroke an election promise and closed the establishment. The research found no evidence of any serious attempt by Westrail or the Governmentto pursue other options than the closure or to market the Workshops capacity and skills. Nor was the Governmentable to provide detailed financialdata to justifyits decision, either before the closure or subsequently. Oral evidence attested to the damaging social and economic impact on the employees and their familiescaused by this political act. The findings bring under scrutiny the ideological processes dedicated to the reduction of the governmentsector. 4 DECLARATION I certifythat this thesis does not, to the best of my knowledge and belief: (i) incorporate without acknowledgment any material previously submitted for a degree or diploma in any institution of higher education; (ii) contain any material previously published or written by another personexcept where due referenceis made in the text; or (iii) contain any defamatory material. Signed .. Date ..../ .....�:. �'?.�O. 5 ACKNOWLEDGMENTS I wish to thank my Supervisor, Dr. Jan Ryan, forher professional guidance and assistance in the preparation of this thesis. Dr. Ryan's support and encouragement were greatly appreciated. I also wish to thank the interviewees fortheir time and for providing me with informationunavailable from printed sources. I extend my appreciation, too, to those persons in rail systems throughout the world who were good enough to take the time to provide informationon their workshops. 6 ABBREVIATIONS A.M.W.S.U. Amalgamated Metal Workers and Shipwrights' Union A.RU. Australian Railway Union (Later P.T.U - Public Transport Union) A.S.E. Australasian Societyof Engineers C.M.E. Chief Mechanical Engineer C.P.H.A. Canadian Public Health Association C.S.O. Community Service Obligation D.M.U. Diesel Multiple Unit (rail car) E.M.U. Electric Multiple Unit (rail car) E.T.U. Electrical Trades Union M.R.P.S. ManufacturingResource Planning System S.R.O.W.A. State Records Office of WesternAustralia W.A.G.R. WesternAustralian GovernmentRailways W.A.P.D. WesternAustralia Parliamentary Debates (Hansard) 7 TABLE OF CONTENTS Page No. Abstract 2 Declaration 4 Acknowledgments 5 Abbreviations 6 INTRODUCTION 10 CHAPTERONE: ECONOMIC RATIONALISM AND PRIVATISATION 15 Definition 15 History 17 Economic Necessity or Ideology 21 The Economic and Social Effects 23 CHAPTERTWO: HISTORICAL BACKGROUND AND THE 1980s 27 Contentious Beginning 27 The Second World War 29 Post War Reconstruction 31 Commercialisation 32 Re-organisation and Upgrading 1980s 33 The Changing Economic and Political Climate of the 1980s 38 The Culture 42 Consultation and Employee Participation 45 8 CHAPTER THREE: THEEARLY 1990s : ON TRACK 49 Midland Workshops to become a Business Unit 49 The Jacobson Business Plan 50 The Henshaw Appointment and Rationalisation Plan 50 Implementation of Rationalisation 53 Quality Assurance Accreditation 60 CHAPTER FOUR: "DERAILED" : THE CLOSURE 65 The Coalition Election Promise 65 The Closure Announcement 66 The Decision Process 68 Reaction to the Decision 70 Absence of Supporting Documentation 76 CHAPTER FIVE: A HUMAN DIMENSION TO POLITICAL/ 85 ECONOMIC DECISIONS Pride, Security and Belonging 85 Apprenticeships 86 Prominent People 87 The Social Milieu and Camaraderie 88 Voluntary Redundancy or Redeployment 89 The Social and Economic Implications 90 False Promises 93 The Questionnaire: 96 Methodology and Limitations 96 9 Analysis of the data 97 CONCLUSION 104 REFERENCES 110 INTERVIEWSCONDU CTED BY THE AUTHOR 119 APPENDIX A: MIDLAND WORKSHOPS BUDGETED REVENUE 1989/90 121 APPENDIX B: SURVEY OF FORMERMIDLAND WORKSHOPS EMPLOYEES 122 APPENDIX C: SURVEY OF OTHERRAIL SYSTEMS 134 APPENDIX D: QUESTIONS FOR FURTHERINVESTIGATION 153 10 INTRODUCTION On 4 March 1994, Westrail's Midland Workshops were closed by the Court State Government, despite a 1993 Election commitment by the Liberal-National Coalition Parties to maintain and upgradethe Workshops. The closure of the largest industrial establishment in WesternAustralia affectedaround 900 workers and their familiesand had significantfinancial implications forWestrail and the State. It was a highly controversial decision. The Government, while claiming the decision was based on economic necessity, refusedto issue any detailed information to justifyits decision. In fact, the Minister concerned subsequently revealed in Parliament that no detailed report had been submitted to Cabinet beforeit made the decision. Established in 1904, the Midland Workshops constituted an important institution, not only forthe State but also in the lives of thousands of familiesdown through the years, representing a valuable source of employment in the Easternsuburbs. There were many familieswhere children followed theirfathers and oftengrandfathers into the Workshops, many to become equippedand eagerly sought as skilled tradespeople. They also provided a vital social milieu forthe workforceemployed there. Originally established

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