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Second Prize In The Arnott’s Sell-Out

By Andrew Casey

Melbourne unionists have had an important redundancy pay victory on behalf of casual workers, in a dispute over the shutdown of Arnott's, an early Australian icon in the history of manufacturing in this country.

" LHMU members have won an Australian first for contract and casual workers who are traditionally denied any redundancy moneys when their employer decides to shut up shop," Terry Breheny, LHMU Victorian Assistant Secretary said today.

" But in the view of most of our members this is just second prize. We know that the Arnott's Sellout is bad for our members, bad for manufacturing in this state, bad for Australia.

Sellout campaign

" The Arnott's Sellout community campaign will continue. It has struck a sensitive nerve in the Melbourne community.

" On Sunday our members will meet with a wide cross-section of the community at 2pm at the Dallas Brooks Hall to discuss where we go from here."

Campaign supporters have leafleted railway stations and supermarkets calling for continuing community support, particularly for the boycott of Arnott's biscuits.

" Federal and State governments should take note. They can't ignore the community will. They must promote jobs and industry opportunities which help Australian manufacturing to flourish and expand.

" Our union office has been flooded with calls of support. We've got people e-mailing us wanting to purchase our Arnott's Sellout T-shirts and stickers. Our website has been flooded by people wanting to show their anger at Arnott's.

Globalisation a debate for all

" The effect on ordinary working people of globalisation is not some rarefied intellectual debate and protests involving just young S11 and M1 protesters.

" When it comes to these Arnott's workers globalisation is something that hits them, and hurts them, personally because a US multinational, Campbells Soups, has no loyalty to Australia, its culture, its icons," Terry Breheny said.

"Campbells Soups makes decisions to downsize without one tear, just an eye on the bottom line."

The US multinational Campbell's Soups bought out the Australian-owned Arnott's chain in 1997.

Arnott's was founded in 1865 by a Scottish immigrant cook whose biscuits soon became Australian favourites. Descendants of the founder sold the Australian company to Campbell's Soups a little over four years ago.

The reason for shutting down the Burwood plant is not financial, last year Arnott's made $100 million profit, most of which went straight to Campbell's Soups. Arnott's admits that the Burwood plant is not unprofitable.

Arnott's is keen to sell the land on which the plant sits. There is much speculation that after it shuts down the company will press the local council to rezone the land, making it suitable for subdivision, giving Arnott's a very sizable profit on the sale.

Redundancy breakthrough

Arnott's announced a new redundancy deal this week which provides the workforce with thousands more dollars in their pockets when they leave and allows them to leave the plant and seek work elsewhere from September without penalty to their redundancy pay outs.

The LHMU also won a historic breakthrough on behalf of casual workers who were excluded from all redundancy rights.

Many of these casual workers had in previous years been compulsorily 'transferred' from the Arnotts payroll to Catalyst, a labour-hire company.

" Catalyst supplied the same people back to Arnott's to work as casuals on their biscuit manufacturing lines. Even though they had been working here continuously for years and years because of their changed status they were to be denied retrenchment dollars.

" Obviously that stank," Terry Breheny said.

" Now they will receive a whole range of severance pay based on years of service thanks to the LHMU campaign."

There is no legal requirement for Arnott's to pay their casual workers any redundancy, but they have chosen to do so, which indicates the campaign has been hurting Arnott's.

Let's remember

" I want to emphasise again, this union and its members think this 'win' is only the second prize," Terry Breheny said.

" We want good, continuing, well-paid jobs for Australians in this city. That's not just up to companies. It needs the help of Federal, State and local government."

Note: If you want to purchase a Sellout Arnott's T-shirt or sticker then ring Helen Alexander at the LHMU office 03 9235 7751.

Or you can send an e-mail ordering T-shirts and stickers to Helen Alexander at:

mailto:[email protected]

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  Issue 96 contents

»	WorkCover: Della Should Split the Package
»	HIH Workers Win Severance Guarantee
»	Abbott Runs From OEA Failure
»	Angry Musos Aim Riffs at Della
»	Second Prize In The Arnott’s Sell-Out
»	Banks Workers Opt for People Over Pay
»	Bosses Raise Stakes in State Wage Case
»	Refugee Riots Sparked By Strike Action
»	Vodafone Promotes It’s Own
»	Champion Workers Left With Nothing
»	Bid for Reasonable Hours to AIRC
»	Political Economy Courses at Sydney University
»	Activist Notebook

»	The Soapbox
»	The Locker Room
»	Trades Hall
»	Tool Shed

»	New Editorial Guidelines
»	Letter to Canberra
»	A Fowler Smell
»	Who Saved May Day?

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