Jump to main content
IndustriALL logotype
Article placeholder image

Success for some, but Tristar struggle continues

21 September, 2007Some of the workers at Australian Tristar factory have secured redundancy packages, but the fight for others continues.

AUSTRALIA:  After more than a year of struggle, union negotiators have secured redundancy packages for most of the workers remaining at the idle car parts manufacturer Tristar. Twenty-three workers have been advised they will receive their full redundancy entitlements in line with provisions in their union-certified agreement.

Of the remaining nine employees, some are expected to reach a resolution in the coming days, said Australian Manufacturing Workers' Union (AMWU) organiser Martin Schutz. "But we'll continue our campaign until every last employee gets their full entitlements."

The Tristar dispute began when the factory effectively ceased operation in April 2006, but retained its longest-serving employees, some who have been with the company for up to 45 years, to avoid paying redundancy payments. Tristar Steering and Suspension was attempting to use the new Australian industrial relations laws to save hundreds of thousands of dollars by keeping "redundant" workers on the payroll until the terms of the union agreement expire.

The collective agreement, which included four weeks of pay per year of service for forced redundancies, was terminated in February 2007. The company was waiting for the terms of this agreement to expire so it would only be required to pay 12 weeks of wages to the redundant workers.

In addition to securing the employees' entitlements, the Tristar campaign has also succeeded in protecting thousands of other Australian workers from the same fate. Embarrassed by publicity around the case, the Australian government extended redundancy provisions to 12 months. That has since been extended to two years after continuing pressure from the AMWU and community groups.