A UNION is preparing to take DSI Holdings to Fair Work Australia over what it claims was the unfair selection of workers for redundancy.
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DSI is making 38 “permanent” workers redundant in addition to 42 “fixed-term” workers who were given four weeks’ notice two weeks ago and about 20 casuals who were dismissed last month.
The Australian Manufacturing Workers Union isn’t contesting the 42 lay-offs as those people are leaving under the terms of an enterprise bargaining agreement and some could be taken back later this year.
But issues about the unexpected 38 redundancies of permanents are a different matter.
The union’s vehicle division NSW secretary Sean Morgan yesterday said the union believed DSI was in breach of a redundancy agreement as it had not applied the required terms.
Mr Morgan isn’t happy with the selections that management has made by “tapping people on the shoulder”, except for five or six who were willing to leave voluntarily with management approval.
He admitted it was a difficult issue to handle.
“This is going to be a tumultuous affair for all concerned,’’ Mr Morgan said.
“It is likely that this matter will proceed to Fair Work Australia so I’ll be notifying the company on Friday that we are entering a disputes resolution process.’’
If Fair Work Australia took the dispute to conciliation and then arbitration the process could take a couple of months, he said.
Mr Morgan appealed for those “tapped” workers to supply the union with information about their skills and experience so a case can be made to retain them.
Mr Morgan said at least the 42 fixed-termers were “not going to be tossed out into the street at an hour’s notice” but had four weeks’ paid work.
“I am sorry employment is no longer available to you,’’ he told several of them on site yesterday.
“But if you come back, you won’t have to serve a six-month probation period.”
The union isn’t opposing the redundancies and lay-offs, which will reduce the workforce to 170, similar to what it was when Chinese company Geely Automotive bought the failed business in 2009.
Mr Morgan said DSI’s three-year production schedule had predicted a trough in activity at this time to be followed by increased production later this year, hopefully with staff numbers rising again.