Vic: Workers who may lose jobs put bans on auto parts

AAP General News (Australia)
12-07-2000
Vic: Workers who may lose jobs put bans on auto parts

MELBOURNE, Dec 7 AAP - More than a hundred workers who face losing their jobs with
a Melbourne manufacturer have banned distribution of automotive parts.

The move, which has the potential to cripple the Victorian car industry, follows the
appointment of a voluntary administrator to Preslite Australia, a company based at Reservoir
in the northern suburbs.

The Australian Manufacturing Workers Union (AMWU) warned the bans, which began on Tuesday,
would continue until the workers' $4 million worth of entitlements were guaranteed.

AMWU organiser Chris Spindler said the workers had produced small motors, which activate
windscreen wipers and windows, for Preslite.

He said the union was continuing talks with the administrator, PricewaterhouseCoopers,
in an attempt to resolve the issues.

Meanwhile, Preslite supervisor Rahim Samat said workers had been told they would not
be paid annual leave over their normal Christmas break between December 22 and January
15.

And the 120 employees were not guaranteed work after the break.

"We have been given no assurances we will have a job and we have been given no assurances
we will get our entitlements," he told AAP.

Mr Samat alleged the company owed up to $12 million in rent and debts to banks and suppliers.

He said workers were told the company would be expanded when it was purchased two years
ago by an overseas company, AIV Malaysia.

But cash flow problems began after the sale and the likelihood of job losses had left
workers devastated.

"Everyone is very distressed," he said.

"There are some people who have been here 42 years, some 27, and myself 13 years. I've
got two children to support."

Ford public affairs spokesman Mike Jarvis said supplies of windscreen wiper motors
for Ford vehicles should be sufficient at least until Christmas.

He said Ford would slow down its production of wagons, but there would be no stand
downs in the immediate future.

Holden and Toyota were not immediately available for comment.

AAP hmg/clr/gmw/de

KEYWORD: PRESLITE

2000 AAP Information Services Pty Limited (AAP) or its Licensors.