TALKS between GrainCorp and the Victorian branch of the Australian Workers Union (AWU) regarding an enterprise bargaining agreement have broken down.
GrainCorp announced this week it would call for a vote of impacted workers on the proposed EBA in order to try and get it through without union support.
Regional manager for Victoria with GrainCorp Peter Johnston said in spite of making a number of concessions, the company had been unable to come to an agreement with the AWU.
However, he was confident workers would vote in favour of the proposal in spite of a lack of union backing.
“We believe a clear majority of our workers agree this is a fair offer.”
“We’ve got a great relationship with our workers and many of them have indicated personally to me they are happy with this deal.”
In spite of Mr Johnston’s optimism, the bulk handler will still have to overcome a strongly unionised workforce and stiff opposition from the AWU, with Mr Johnston confirming 82 out of 87 permanent workers impacted by the EBA were AWU members.
Victorian AWU branch secretary Ben Davis said there were three major sticking points.
“The main one relates to job security, there are issues there relating to the use of workers provided by labour hire businesses,” Mr Davis said.
“If they plan to use labour hire we want to see those workers paid the same as permanent workers to remove the financial incentive to use labour hire options.”
Mr Johnston said the provisions regarding the use of labour hire firms were not financially motivated but related to attracting staff to remote upcountry locations.
Another point of contention relates to a clause in the EBA which does not allow for forced redundancies, which GrainCorp wants to remove.
“It has always worked in the past, it just means GrainCorp has to put more effort in to find voluntary redundancies or people willing to move,” Mr Davis said.
Wages are also up for debate, but both Mr Davis and Mr Johnston said this was not a major issue.
Currently a wage increase of 2 per cent, in line with CPI, has been offered, with Mr Johnston saying Victorian workers already had the highest wages across the GrainCorp network.
Mr Davis confirmed wages were not a major bone of contention.
“We’ve been offered 2pc, virtually anything above that we’d be willing to have a good look at it,” he said.
With Victoria on the cusp of a second consecutive higher than average harvest, GrainCorp will want to have the matter wrapped up prior to the headers rolling.
Mr Johnston said he felt the company had earnt a certain amount of goodwill amongst its staff.
“During the drought of 2015 we didn’t lay off any workers.
Mr Davis said the loyalty had worked both ways.
“In the drought years workers agreed to hold off pushes for a wage rise and tightened their belts as well.”
Mr Johnston said the pay rises were in line with other business sectors, in spite of AWU claims executive pay rises had exceeded that offered to workers.
“I encourage our people to consider the offer as a whole, we are hopeful of a resolution as soon as possible.”
Currently there is protected industrial action underway, including limited weekend and shift work, although Mr Johnston said some workers were choosing to work these shifts.
Mr Davis said the AWU had not ruled out ramping up the industrial action should a satisfactory outcome not be reached.
GrainCorp has sent out voting cards for the vote, which will take place as a secret ballot.
Results are expected to be known by the end of next week.
The deal relates to staff at GrainCorp’s port facilities at Portland and Geelong and receival terminals in the Western District, Central Victoria, the North East and the Wimmera-Mallee.
GrainCorp can employ over 1000 including casuals across Victoria at peak harvest time.