Packaging factory workers wrap up strike with a win
Workers at a packaging factory in Melbourne’s west have won most of their demands after launching an indefinite strike. The open-ended strike, which started on 10 November, was the first such action at VIP Packaging in more than a decade. It followed two full-day stoppages on 28 October and 5 November.
The spate of industrial action came after enterprise agreement negotiations with the company stalled. “Every time we entered negotiations, [there was] a new person at the table. That drags things on”, one worker told Red Flag.
Workers at the Laverton factory are represented by two unions. Those on the shop floor are members of the National Union of Workers, and maintenance workers are in the Australian Manufacturing Workers’ Union. Each decision to strike was unanimous.
NUW organiser Jonathon Dixon told Red Flag that the outcome is a result of workers in both unions coming together to fight. “They recognised their shared interests and supported each other”, he said.
The benefits secured by the workers include a 12.2 percent wage increase over four years and the retention of uncapped redundancy payments for current employees, many of whom have worked at the factory for decades. However, one concession made as part of the deal is that new starters will have their redundancy payment capped at 78 weeks.
The most significant win was over job security for casual workers. Under a new casual conversion clause, any casual working at the site must be made permanent after three months unless the company can provide an “operational reason” for their position remaining casual. After six months, casual workers must be offered permanent employment regardless of any explanation offered by the company.
Currently, casual workers at the factory are employed by a labour hire agency, meaning that there are few legal consequences for VIP if they are mistreated.
“It’s a way of them outsourcing risk”, Dixon said. “This weakens and divides the workforce, as the company can play permanent and casual workers off against each other.” The gains made by the combined strike action mean that six months from now everyone currently working at the site will be employed directly by VIP.
“It is a big win. The workers took action on what was basically a point of principle”, Dixon said. “They all went back to work feeling good about the outcome. They’ve gone back stronger, and with a sense of their own power.”
