Union talks fail

More than 180 workers at a Melbourne car components factory are expected to be stood down early Monday, a union says.

An administrator was appointed to oversee Ajax Engineered Fasteners three months ago, but the Australian Workers Union (AWU) says rescue talks have broken down.

Unions officials will meet workers at the factory in Braeside, in Melbourne's south-east.

The AWU said the decision follows a meeting between the union, administrator PriceWaterhouseCoopers, the company's owner Allen Capital and car companies Holden and Ford.

A union spokesman said the talks failed to secure the company's long-term future and Allen Capital had appointed a receiver.

Ajax supplies nuts and bolts to Ford and Holden for use in engine, driveline, vehicle assembly and brake systems.

Ajax, which was a division of Global Engineered Fasteners (GEF), was placed in voluntary administration on August 7, and car manufacturers, including Ford and Holden, agreed to underwrite a multimillion-dollar rescue package.

The deal was supposed to give the company some time to trade itself out of financial difficulty, and also allow the car makers to secure other suppliers if Ajax folded.

The union said Ajax employees were owed about $12 million in entitlements.

Source: AAP 2006