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GM Holden, in the midst of seeking financial help from the Australian government, reportedly agrees to a spectacular wage deal that will raise the income of 4,000 employees up to 22.3% over the next three years.
The Australian newspaper says workers will receive a guaranteed 18.3% increase, with some getting 22.3% hikes.
Neither GM Holden nor the unions have made an announcement about the new contract.
The newspaper says union leaders call the deal spectacular.
“In the automotive industry it represents the best deal yet to be negotiated and is highly recommended to members,” The Australian quotes Australian Manufacturing Workers' Union Vehicle Div. Federal Secretary Ian Jones and AMWU Victoria Secretary John Camilloas saying in a note to union members.
The newspaper says all workers will get an increase of 8% in the first year, 5% in the second year and 2% in the third year of the pact.
Hourly employees also will receive a “hardship-recognition” payment worth A$1,750 ($1,881) in the first year, and A$1,000 ($1,075) in the second and third years.
The union is quoted as saying the hardship-recognition payments are intended to offset the layoffs and pay cuts introduced during the global financial crisis.
“The significant pay increases are likely to come under harsh scrutiny as the auto maker negotiates a new assistance package with the federal, Victorian and South Australian governments,” The Australian notes.
