Workers owed $1.8 million stood down

April 20, 2007
Issue 

Forty-nine workers at Coghlan and Russell, a car components factory in Geelong, have been stood down after the company called in receivers.

On April 5, the workers discovered that their superannuation had not been paid for more than eight months. When the Australian Manufacturing Workers Union (AMWU) confronted management, it was told that the company had a plan and would talk to the union in a couple of days.

On April 10 the AMWU was contacted by PPB accountants to inform it that Coghlan and Russell had gone into administration. The workers discovered on April 12 that there were no wages or entitlements, and that they were being stood down. Coghlan and Russell supplies parts to Ford Australia, which subsequently threatened stand-downs of 3000 car manufacturing workers.

The workers occupied the factory for 24 hours a day in three shifts to ensure that no-one took plant and equipment or scabbed on their jobs. They told Green Left Weekly that the boss, Glen Russell, had walked past a couple of times after being locked out by the administrator and said to them, "Wouldn't you fuckers be better off at the beach enjoying yourself than hanging around here making a nuisance of yourselves?"

Negotiations with the AMWU were proceeding when, on April 20, the workers were ordered to return to work. They have not been given assurances that they will receive the $1.8 million in entitlements owing to them, but told GLW they are confident they will see this through. Chris Holmes, a toolmaker and shop steward at the plant, said: "The support has been great, especially from workers who know they're in the same boat. But even when this is over, the laws and regulations will still be the same. The government must do something to address the issue of ongoing protection for employee entitlements."

The workers will discuss their options at a meeting on April 30.

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