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Australia: Vigilant Strike Leads to Superior Gains for AMWU Members at Megabolt

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20 September, 2010

A 17-day strike by members of the Australian Manufacturing Workers’ Union (AMWU) ended last Wednesday, 15 September, against Megabolt Australia Pty. Ltd., a Campbellfield, Victoria, producer of nuts, bolts, roof plates and other metal gear primarily sold to the mining industry. The 25 metalworkers won an exceptional contract in their first enterprise labour agreement with the company, owned by the Hutchins family’s Wham Investments.

Megabolt workers took up the AMWU banner after being stymied by a thriving company over wages. Some employees had worked up to ten years at wages of A$15 an hour, barely above the Australian minimum wage.

photo: Tim Laurence

After maintaining 24-hour picket lines since the strike started on 30 August, Megabolt General Manager Tom Hutchins admitted he wanted labour peace and a resumption of production because, as he stated in a local newspaper, “I’ve got more business to win and jobs to create … I don’t want anything more than to get a resolution.”

That resolution came in the excellent three-year accord. Workers won a 10% wage increase, backdated to 2 June 2010, with 4.5% increases to come each in 2011 and 2012. In addition, the AMWU won an A$750 ratification bonus for each worker, and the union negotiated permanent and full-time work status for all casual workers who have been on the job for longer than six months.

Other gains include monthly rostered days off, improved redundancy provisions, an award-aligned classification structure, language on use of contractors, as well as health and safety and union rights.

“We’re ecstatic with the outcome,” said AMWU delegate Zelko Cimboro inside Megabolt. “We got the outcome we wanted and the workers definitely feel stronger together now.”