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Press Release

Union fight adds $10 million to Huon funds, helps secure jobs and entitlements

Wednesday July 26, 2006

Victorian State Secretary Antony Thow
Victorian State Secretary Antony Thow

National Union of Workers Victorian State Secretary Antony Thow has slammed the Australian Corporations and Workplace laws which forced workers to launch a two-week community protest, just to win what was rightfully theirs.

Thow announced today that workers from Frankston car components factory FRN would vote to return to work tomorrow (July 27) after nearly two weeks of community protest to try to secure their entitlements, after their owners Huon Corporation went into voluntary administration on June 30.

Workers at Huon Corporation’s other major site, Empire Rubber in Bendigo, returned to work yesterday after the seven major customers of the group signed onto a rescue deal to try to salvage the businesses yesterday morning.

However, one major customer, Holden, had still not signed a final piece of the rescue package until this morning, meaning that Empire Rubber workers did not handle any Holden products and FRN workers (who only manufacture Holden products) manned the protest line for another day.

Thow said it was a disgraceful situation that workers had to go to such lengths to try to secure their entitlements and job security.

“These workers have been made a lot of promises over the years. First by Nylex and then by Huon Corporation when it bought the businesses seven months ago,” Thow said.

“In the end these promises counted for nothing, as both companies continued to neglect the businesses and allow them to get into trouble.

“And what rights did the workers have in all of this – basically none. Even their decision to launch a community protest was legally challenged.

“We are just extremely grateful for the Australian Industrial Relations Commission’s intervention last week, which helped to broker the deal to salvage these jobs and entitlements.

“And that is what the AIRC should be there for, to help settle just these sorts of disputes, in a fair and reasonable manner, not to punish workers and unions who dare ask for their rights to be protected.

“The successful resolution of this dispute shows just how important unions and the AIRC are to the Australian industrial landscape and it is about time the Federal Government realised this, and called off its full-scale attack on both institutions.”

Thow said, the collective action of the NUW, AMWU and its members had effectively saved these companies.

Thow said when the community protest began almost two weeks ago, there was basically no money in the bank, but in that time a rescue package had been developed which would see at least a $10 million cash injection into the businesses.

“Without the efforts of the NUW and AMWU and our members I think you could safely say these businesses would no longer exist,” Thow said.

“Now, these great Australian companies have a chance to be re-born, with owners who will not neglect the factories and their employees in the way Nylex and Huon have done.

“And nearly 600 employees can rest easy in the knowledge that through their collective action they have gone from having no access to any entitlements whatsoever, to the very real possibility of receiving 100c in the dollar.

“We are thrilled that the work of the unions, in conjunction with the administrators, has finally seen the car companies come on board and at least give these factories some chance of survival.”

But while the workers at all three sites had agreed to return to work and full production, Thow said the fight was far from over.

“There is a lot of work to be done to ensure that our members receive the respect they deserve, and the entitlements they are owed,” Thow said.

“We have made huge progress by having the seven major customers sign on to this rescue package, but it is just part of the plan to salvage as many jobs as we can, and ensure those unfortunately made redundant receive their full entitlements.

“The Supreme Court action to try to have the $13 million worth of assets allegedly stripped from Huon Corporation by its managing director John Schulz continues, with mediation set down for next Monday. If that fails, we are hopeful of receiving a trial date by the end of next week.

“We will also continue to encourage the major customers to extend their commitment to the Empire Rubber and Mills Elastomers sites beyond the current three months, and to negotiate with any new owners on fair and equitable terms.

“And most importantly we will be working tirelessly with the administrators to try to ensure the sale of Empire Rubber and Mills Elastomers to secure the long-term viability of the businesses and the jobs of those working there.

“This has been a huge fight, but one the union movement can be justifiably proud. Without the collective action of our members these companies and manufacturing jobs would have gone the way of so many others; now they have a fighting chance.”

For further information please contact:

Di Lloyd
(03) 9287 1777

Last modified 2008-10-17 12:56 PM

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