‘Retiring’ Mitsubishi workers get full redundancy deal

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‘Retiring’ Mitsubishi workers get full redundancy deal

The Mitsubishi redundancy deal has set a precedent because the full package applies to workers nearing retirement, according to union sources.

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The Mitsubishi redundancy deal has set a precedent because the full package applies to workers nearing retirement, according to union sources.

AMWU SA state organiser Paul MacMahon told WorkplaceInfo that past redundancy deals at Mitsubishi had seen workers who had turned 64 offered $10,000 or their wage until they turned 65 - whichever was the higher.

‘Under this deal they get the full package - the age cap has been removed,’ he said.

Age discrimination

McMahon said the union had tried to win full redundancy packages for workers near retirement in the past by taking a case of age discrimination to the Human Rights and Equal Opportunity Commission (HREOC).

‘We always failed because in the past everything stopped at 65, such as WorkCover,’ he said. ‘We have now won the matter industrially.'

‘Sets precedent’: union

‘It is a superb package and we believe it will set a precedent for the vehicle industry - and will spread to other industries.’

The pay-out provides the 930 Mitsubishi workers with lump sum payment of seven weeks pay, plus four-and-a-half weeks pay for every year of service to a maximum of 102 weeks.

Loyalty payment

They will also get an extra week of pay for every year of service, uncapped, as a loyalty payment, all leave and long-service leave entitlements and be paid for up to 25 days of unused sick leave.

They will get $400 to pay for financial advice on investing their pay-out, which is estimated to cost the company about $100 million in total.

AMWU State Secretary John Cammillo said some of the workers had been there for 48 years, and all had worked in the plant for at least four years


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