Holden workers agree to wage freeze

GM Holden's future manufacturing operations are looking steadier today after its workers agreed to a three-year wage freeze.

The employees at Holden's Elizabeth manufacturing plant in Adelaide that builds the Holden Commodore and Cruze models also agreed to new working conditions as part of a deal that will help reduce costs for the local car manufacturer.

Secretary of the Australian Manufacturing Workers Union (AMWU) in South Australia, John Camillo, addressed the media outside Holden's Elizabeth plant near Adelaide. He explained that a majority of roughly 1700 workers voted for the changes but that "It's been a very tough time for our members and their families".

The wage freeze and other adjustments to the current agreement -- such as shorter breaks -- will now be a reality for workers as will the abolition of annual three per cent wage increases.

The new agreement also introduces a controversial clause that allows Holden to terminate staff who exhibit "inefficiency and malingering". The new agreement is expected to save Holden up to $15million per annum.

AMWU Secretary John Camillo said that now it was up to the government to ensure the long term viability of GM Holden's manufacturing plant by investing in its future.

"The workers have made a clear majority vote…we'll now be calling on the politicians to make their commitments.

"It’s good news at this stage," said Camillo, "but we still need the politicians' support for co-investment to keep it going for the next generation."

The upcoming federal election on September 7 could play a pivotal role in the future of Holden's local car making operations beyond 2016.

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