Government pushed SPC to slash wages in return for bailout, union officials say

Date
    February 20, 2014


The Abbott government pressed SPC Ardmona to slash pay for workers by as much as 40 per cent under a radical bailout plan for the food processor.       

Three union officials told Fairfax Media they had meetings with SPC Ardmona managing director Peter Kelly before Christmas in which Mr Kelly said he was being pressured by the Abbott government to put workers on the award if the company wanted a $25 million subsidy.

Moving workers on to the award would have dramatically cut living standards for hundreds of people at the Shepparton plant, with pay cuts of $20,000 to $30,000 a year for many. Other sources involved in the restructure have separately confirmed to Fairfax Media the Abbott government's pay push at SPC Ardmona. Industry Minister Ian Macfarlane refused to directly answer questions on the issue.      

The government has been pushing struggling companies such as Toyota and SPC Ardmona to overhaul their workplace agreements as it has repeatedly warned about high wages, which has become a key political issue. That is despite the wage price index growing at just 2.6 per cent last year, the slowest growth in the 16-year history of the series.


Mr Macfarlane said on Wednesday costs had to fall. ''I do want to reduce labour costs but it's not necessarily reducing wages,'' he said.

''If we boost our productivity, if we increase the number of units that a person produces, then wages can remain stable but we do have to have competitive working conditions and we do have to make sure that some of the things that have happened in industry in Australia in the past are addressed.''

Treasurer Joe Hockey said costs were too high. ''We do have a high Australian dollar. We've got to reduce our costs of making things in Australia,'' he said.

ACTU secretary Dave Oliver said Australia was in a ''job security crisis'' with thousands of jobs lost and wages growth slowing. ''Meanwhile, under the banner of a so-called 'wages blowout', the Abbott government has blamed every economic fallout on workers.''      

If SPC Ardmona workers had been moved on to the award, pay for a level-two process worker would have been cut from about $50,000 a year to $33,000. For higher-paid maintenance workers, the falls would have been even more dramatic, dropping from as much as $85,000 a year to about $50,000.    

Electrical Trades Union state secretary Troy Gray said the SPC Ardmona boss had told him he'd had meetings with senior government figures including Mr Macfarlane. ''Kelly said to me the government has made a demand that workers be put on the award; he said, 'I don't think the government understands what that means' … after he [Kelly] explained it to the government it was clear they understood it would mean a pretty severe reduction in wages.''

Mr Gray said the government was trying to push through industrial relations reform by pressuring distressed companies to slash wages and conditions in exchange for financial support. ''This is WorkChoices mark 2 by stealth; it's disgusting to be honest.''      

Australian Workers Union state secretary Ben Davis, who had a separate meeting with the SPC Ardmona managing director, also confirmed that Mr Kelly had said he had been pressured by the Abbott government to put workers on the award.    

Another union official who met Mr Kelly in mid-December, the ETU's Damian King, confirmed the same. He said the union had offered a two-year wage freeze to try to keep its members in work but SPC Ardmona said it would cut 73 maintenance staff and outsource the work. ''Kelly said he was trying to impress them [the government] by contracting out.''

SPC Ardmona spokeswoman Sally Loane declined to comment about workers being moved to the award. ''We have no comment to make about private conversations with any stakeholders.''

Labor's employment and workplace relations spokesman, Brendan O'Connor, said Prime Minister Tony Abbott had previously attacked publicly the ''modest pay and conditions'' of SPC workers. And ''Mr Hockey has made it clear that he supports a race-to-the-bottom approach to workers' wages and conditions in this country'', Mr O'Connor said.      

After the government refused to provide $25 million to SPC Ardmona - citing ''extraordinary'' workplace conditions at the plant - it was attacked by local Liberal MP Sharman Stone, who accused Mr Abbott and Mr Hockey of ''lying'' about workers' conditions.

The state government soon after committed $22 million to refit the processing plant, with SPC parent company Coca-Cola Amatil offering $78 million as part of a $100 million package.

Read more: http://www.smh.com.au/federal-politics/political-news/government-pushed-spc-to-slash-wages-in-return-for-bailout-union-officials-say-20140219-3314e.html#ixzz2tnMpJuCJ

There are some that wonder why people join unions.  Go figure.      

Armchair_Politician wrote on Feb 20^th, 2014 at 5:22am:


If you had a 40% pay cut could you pay all your bills?

SOB

Said it before, and will say it again.  The liberals cant be trusted with industrial relations.      

Slowest wages growth on record proves true extent of Abbott Government lies
19 February, 2014 | Media Release With the wage Price Index released today showing wages growth well below average in every single industry, it’s time for the Abbott Government to come clean about the non-existent ‘wages-blowout’.

ACTU Secretary Dave Oliver said, “The truth is that we are seeing the slowest wages growth on record and it’s time for the Abbott Government to be honest and upfront with workers.”

“Australia is in the midst of a job security crisis with thousands of workers losing their jobs and many others pushed into casual insecure work. Meanwhile, under the banner of a so-called ‘wages blowout’, the Abbott Government has blamed every economic fallout on workers,” Mr Oliver said.

“It’s simply false and misleading. There is no such thing as a wages blow out in Australia. These figures show that wages grew 2.6 per cent last year, while the CPI rose 2.7 per cent.”

“Wages didn’t even keep up with inflation.”

He said, “On the other hand, at the same time as wages growth is slowing, big corporations are revelling in a bumper profit season, with major employers like Commonwealth Bank, BHP Billiton and Wesfarmers reporting big jumps in earnings and multi-billion dollar profits.”

“This follows the worst unemployment figures in over a decade. We are still waiting for Tony Abbott to step up and fight for jobs.”

“Every day workers in this country are confronted with more job losses, more jobs going offshore and continued inaction from the Abbott Government.

“We know Australians are struggling with the cost of living and worried about job security but they’re getting cold comfort from a Federal Government that has made clear it won’t stand up for working people.”

“Instead they are seeking to attack their wages under a banner of misinformation.”

Mr Oliver said there were two urgent priorities to protect Australia's economic prosperity - one is job creation and the other is to avoid a slash and burn Budget with further cuts.

"If the Abbott Government serves up a slash-and-burn Budget in May as promised it will throw more Australians out of work and onto the dole queues,” Mr Oliver said.

"Reduced spending or increased taxes in these conditions will make a bad situation worse.

"Tony Abbott must urgently spell out a plan for job creation and back up his promise of one million new jobs within five years.”

Armchair_Politician wrote on Feb 20^th, 2014 at 5:22am:


the award wage in the manufacturing industry is $34,000 a year....

so how in the hell did these unskilled nincompoops get on wages of $54,000 to $64,000 a year????

Labor and the Union thugs have destroyed manufacturing in Australia... 

True Blue... wrote on Feb 20^th, 2014 at 6:25am:
Oh yeah!!! They and their families are really living high on $54,000 to $64,000 a year. Champagne and oysters all the way.   

ImSpartacus2 wrote on Feb 20^th, 2014 at 6:29am:


most of the Tradesmen I know are only earning on average $45,000 a year...

and they are tradesmen...

not these no skilled greedy bums... 

and at the end of the day... if they want to keep pushing for exorbitant wages SPC WILL CLOSE DOWN...

so its either work for sustainable wages or go on the fricken dole...

which would you choose?