Vic: Talks continue at Ajax to avert 10,000 stand-downs

AAP General News (Australia)
08-20-2006
Vic: Talks continue at Ajax to avert 10,000 stand-downs

MELBOURNE, Aug 20 AAP - Talks are continuing to try to save troubled Victorian auto
component maker Ajax and prevent the shutdown of much of the Australian car industry forcing
up to 10,000 stand-downs.

Negotiations over a six-month rescue package resumed at midday (AEST) today and were
expected to continue into late tonight.

A key union says Ajax's administrator plus representatives of Holden and Ford may also
need to meet again tomorrow, but a positive outcome was still expected.

"I'm not sure wether it will come tonight or tomorrow but I'm confident we'll get a
solution," Australian Workers Union (AWU) branch secretary Cesar Melham said tonight.

"There is no argument about whether the rescue package should be put in place because
if they don't ... come Tuesday there won't be any cars manufactured in Australia for a
while."

He said up to 10,000 workers with Ford in Victoria and Holden in South Australia faced
being stood down if a solution is not found before Tuesday.

"That's how serious it is, Holden will be moving to a shut down mode on Tuesday morning
with Ford to follow," he said.

Mr Melham said he understood there was in principle support for major elements of the
rescue package, and talks were now centred on the wording.

A rescue package would ensure Ajax could continue operating until a buyer was found.

The company's 189 workers were stood down by the administrator early on Friday, and
Mr Melham said they could return to work as early as Tuesday if the rescue package is
accepted.

The union will meet with the workers again at 7am (AEST) tomorrow.

Ajax Engineered Fasteners, based in Melbourne's south-east, is a division of Global
Engineered Fasteners (GEF) and it makes the specialised nuts and bolts that are used in
more than 200 automotive parts required by the car makers.

Ajax supplies the essential components on the so-called just-in-time system, which
means they are provided when required, but no stockpile of parts is kept.

If the manufacturers run out of components, they must halt production.

The workers could be sacked without getting their owed entitlements if Ajax goes into
liquidation.

AAP dr/jt/nf

KEYWORD: AJAX NIGHTLEAD

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