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Carsales Staff13 Apr 2007
NEWS

Workers occupy car parts factory in Vic

Auto parts workers out for entitlements

Forty-nine workers are occupying a car parts factory in Victoria's south-west after being stood down without pay.

Workers at Coghlan and Russell Engineering in Geelong were stood down on Thursday without pay or assurances they will receive almost $1.5 million they are owed in entitlements, the Australian Manufacturing Workers Union (AMWU) said.

The factory entered administration on Wednesday in what the union said could again put the country's automotive industry at risk of shut-down.

"There is no money to pay the entitlements of these workers and they have occupied the site," AMWU acting Victorian secretary Steve Dargavel said.

The union said the factory entered administration following a downturn in six-cylinder vehicle sales from Ford and Holden and owed money to Ford following a contract dispute.

Mr Dargavel said workers were again bearing the brunt of the federal government's poor industry policies.

"The federal government changed the entitlement scheme GEERS (General Employee Entitlements and Redundancy Scheme) to make these workers ineligible," he said.

"It's time the federal government instituted a proper entitlement scheme."

The company supplies about 40 different components to Australian car manufacturers, including engine mounts for Ford and catalytic converters for Holden.

Source: AAP 2007

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