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12 March, 2007
Union members of ICEM affiliate Liquor, Hospitality and Miscellaneous Union (LHMU) of Australia began industrial action 8 March at a tyre factory in Salisbury, South Australia. The 500-member workforce voted on 2 March for strike action due to wide differences in future wage increases. LHMU began four-hour work stoppages last Thursday.
Bridgestone responded by issuing temporary suspensions to some workers, claiming the suspensions were necessary due to production cuts. Management issued the suspensions without consultation with the union. LHMU has informed the company that an overtime ban is in effect all this week, and that a 24-hour strike will begin on 19 March.
Bridgestone had initially offered either a three-year contract with wage hikes of 4% over the entire contract, or a 6% increase over four years. That was modified to 6% over three years, with a bonus payment of A$2,000 per worker and productivity bonuses that could total A$3,000. Workers are seeking a 4% increase for each year of the renewal agreement. Talks have been ongoing for nearly a year.
LHMU claims workers at the auto and truck tyre plant have been struggling to win adequate wage increases just to keep pace with inflation. “For the past six years, they’ve received an annual raise of just 3%,” said LHMU Organiser Jim Watson. “Now the company wants to offer them even less.”
On the day of the 8 March job action, LHMU members at the tyre factory received the solidarity of the United Steelworkers (USW) of North America in a letter. The USW is currently engaged with Bridgestone in difficult talks in the US, covering 5,000 workers at eight factories.
“The USW has a history of difficult negotiations with Bridgestone,” wrote Executive Vice President for Rubber, Ron Hoover. “One lesson we have learned in our dealings with Bridgestone and other companies is that union power is bolstered when unions across the globe stand together in disputes with common employers.
“We are happy to stand together with LHMU in its current effort to achieve a fair contract with Bridgestone,” pledged Hoover.
Japan-based Bridgestone Corporation is currently engaged in a share buy-back plan, totalling A$50 million, of Bridgestone Australia Ltd., which would make the company privately-held and a direct subsidiary of the Japanese parent.