The Federal Government has had plenty of warning on the issue which is now causing such strife in the automotive industry.
About 300 workers of the TriStar steering and suspension company went on strike over the failure of the company to entertain negotiations over protecting employee entitlements during enterprise bargaining negotiations. The company supplies components to major manufacturers who have now stood down, or are about to stand down, 12,000 workers. It seems that that TriStar was the first company to be hit by a campaign by the Australian Manufacturing Workers Union to set up a fund to protect employee entitlements.
The campaign arose after the failure last year of National Textiles, a company in which the Prime Minister’s brother, Stan Howard, was a key manager. About 300 employees stood to lose about $11 million in holiday, long service and other entitlements. However, the federal government bailed them out on a special-case basis. Since then, many other companies have failed, leaving employees in the lurch. Perhaps the largest was the case of OneTel in which 1400 employees were owed at total of $25 million.
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