Holden deal puts pressure on other workers
Thursday, 15 August 2013
Author: Kevin Naughton, Indaily
Workers can expect pressure to take cuts in pay and conditions similar to Holden employees as the local economy feels the strain of a broad downturn.
Labor force analyst John Spoehr and Premier Jay Weatherill agree that the recent Holden decision has set a precedent.
Holden workers voted this week to approve a variation to their Enterprise Bargaining Agreement, freezing wages and reducing breaks, leave and redundancy packages.
The 1700 Holden workers at Elizabeth are the latest South Australians to take a pay cut to keep their jobs in an economy that is under pressure.
Spring Gully food processing workers had been taking pay and conditions cuts for a long time before the company almost fell over. They still have their jobs after the company survived a brief period in administration.
Small businesses with less than 20 workers are keeping afloat by giving workers less hours.
Spoehr says the trend reflects the seriousness of the current economic crisis in SA.
"Other firms in the automotive and manufacturing sectors will now be sitting down with their employees and negotiating new agreements that reflect whatever pressures they may be under," the Executive Director of the Australian Workplace Innovation and Social Research Centre said.
"They will, however, have to demonstrate that there is a genuine reason for these deals to be done.
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