Holden workers asked to take pay cut

HOLDEN will ask factory workers to take a pay cut of up to $200 a week or risk the company shutting its Australian manufacturing operations.
Union officials met with Holden today to start confidential negotiations over wages and conditions following the Coalition's threat to cut $500 million from industry funding by 2015 if it wins the Federal election in September.
Although factory workers are yet to have the offer put to them, word of the potential pay cuts quickly spread on Facebook: "Holden wants workers to take a $5 to $7 [per hour] pay cut, is that even legal?" said one post. "Might be better than no job at all," said another. "Ask a Ford employee if they'd be happy with it."
Others viewed it as a way for Holden to reduce payouts to its workers. "If it guarantees a long term future it might be different, but I think this is aimed at reducing redundancy payouts."
Holden is in the middle of finalising 400 redundancies at its vehicle assembly line in Elizabeth and 100 redundancies at its engineering facilities in Port Melbourne. It is the largest round of Holden job cuts since the Global Financial Crisis.
Figures obtained by News Limited show car assembly workers in Australia are paid about $50 an hour when all taxes, entitlements and other benefits are included, compared to $32 an hour for manufacturing workers across all sectors.
Labour accounts for 65 per cent of a vehicle's manufacturing cost in Australia, say local factory sources.
The battle over wages comes in the same week Holden boss Mike Devereux confirmed the car maker would be forced to shut its vehicle assembly line in Elizabeth South Australia and engine facility in Port Melbourne if funding was cut from the industry.
Following last month's announcement of Ford's factory shutdowns in October 2016, Holden said the car manufacturing industry would be able to survive - but was dependent on "consistent and globally competitive government support".
Federal opposition industry spokeswoman Sophie Mirabella said earlier in the week: "We have to end this embarrassing cap-in-hand approach to government and secret deals behind closed doors."
But the national secretary of the Australian Manufacturing Workers Union vehicles division David Smith said yesterday Holden's position was not a hollow threat.
"Holden is absolutely not bluffing," Smith told News Limited. "General Motors has to make an investment decision for the next 10 years. If the Coalition pulls $500 million from funding it won't have to wait for another productivity report to decide what to do. Holden will have made the decision for them. They'll be out, and it will cause social destruction in these communities."
The AMWU vehicles division representative said the union and its workers were open to discussion about new conditions that would help secure Holden's manufacturing future, but stopped short of volunteering its workers to take a pay cut.
"The union is prepared to sit down and have a look at areas of operations that would bring about a more productive workplace," said Smith. "But there is a limit to how much you can ask. Wages alone are not the answer. A pay cut only has a benefit for a certain period of time, then people become restless."
Smith said Holden factory workers had already been flexible, working one week on and one week off during the Global Financial Crisis, and had collapsed two daily shifts into one in the years since.
Holden confirmed there was a meeting with union officials today but would not disclose the details of the discussions.
"Holden does not comment on any discussions with our unions or workforce," said Holden's government affairs spokesman Matt Hobbs. "We are in constant discussion about a range of topics. We will continue to work closely with all stakeholders to preserve the future of Holden manufacturing. All parties are fully committed to Holden continuing to build cars in this country."
The Federal Industry minister Greg Combet told News Limited earlier in the week: "The Coalition's policy [to cut funds] would kill the auto manufacturing industry in Australia stone dead."
Representatives for Greg Combet and Sophie Mirabella declined to comment on the proposed wage cuts.
A spokesman for Premier Jay Weatherill said the State Government had not been made aware of plans to cut pay for Holden workers but remained in frequent contact with the company over a planned $50 million support payment.
Mr Weatherill yesterday said Holden "aren't bluffing" when they claim plant closures are on the table and again warned federal Opposition Leader Tony Abbott's refusal to offer more money to the automaker would result in shutdowns.
SA Opposition economic development spokesman Martin Hamilton-Smith said it was a "very difficult time for Holden".
"The Opposition encourages the company and the unions and the workforce to work through the issues," he said.
"This news underpins just how important it is that state and federal governments do all they can to help the company and workforce."
SA Opposition Leader Steven Marshall was unavailable for comment but is due to give a Budget reply speech in State Parliament on Tuesday, where it is expected he will address the issue of ongoing car industry support.