Mitsubishi workers accept exit package

Mitsubishi workers have accepted a redundancy package, clearing the way for the car maker's assembly operations in Adelaide to close at the end of March.

In a secret ballot on Wednesday, the company's Tonsley Park staff endorsed the agreement negotiated by the Federation of Vehicle Industry Unions (FVIU), with 71 per cent voting to accept the deal.

It will cost the company an estimated $100 million with some workers eligible for more than two year's pay.

FVIU state secretary John Camillo said the mood at the meeting was fairly quiet and relaxed with most there realising it was a good deal.

"They were quite happy, because they know they've got one of the best packages possible in the automotive industry in Australia," Mr Camillo told AAP.

The redundancy package provides the 930 Mitsubishi workers about to lose their jobs with a seven week lump sum payment plus four-and-a-half weeks' pay for every year of service to a maximum of 102 weeks.

They will also get an extra week of pay for every year of service, uncapped, as a loyalty payment, all leave and long-service leave entitlements and be paid for up to 25 days of sick leave.

The package is better than the one provided to about 670 workers made redundant when Mitsubishi closed its Lonsdale engine plant in 2005.

Mr Camillo said unions would continue to monitor Mitsubishi workers over the next 12 months to ensure they found meaningful, fulltime employment.

"The experience we had from Lonsdale was that some went into bullshit jobs and when the money dried up they were back on the unemployment lists," he said.

"That's not what I want to see."

Mitsubishi announced its plans to close its assembly operations earlier this month, blaming declining sales in the large car market and accumulated losses of more than $1.5 billion over the past 10 years.

Local company chiefs recommended the move to the Mitsubishi board in Japan after considering a range of alternatives including manufacturing different types of vehicles in SA.

The impact of the decision on the company's standing with local car buyers will become clearer next week when official sales figures for February are released.

Potential employers looking for skilled staff have been invited to take part in a two-day jobs expo at the Mitsubishi plant next week.

Federal Minister for Employment Participation Brendan O'Connor said the expo would provide an excellent opportunity for employers to access staff.

"There are many commercial opportunities in Adelaide including in sectors such as advanced engineering, renewable energy, resource, defence and information and communications technology," Mr O'Connor said.

"Workers will be eligible for significant retraining opportunities to meet skills in demand in growing sectors of the economy."

Source: AAP 2008

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