Kagan Logistics faces NUW strike

Kagan Logistics faces strike action from NUW because proposed enterprise agreement is a "threat to permanent employment"

Kagan Logistics faces NUW strike
Kagan Logistics faces NUW strike
By Brad Gardner | June 3, 2010

Kagan Logistics faces the prospect of a union strike over claims its proposed enterprise agreement threatens permanent employees.

Fair Work Australia has given the National Union of Workers (NUW) approval to seek support from Kagan staff to strike over a disagreement on labour hire.

The NUW wants extra provisions for labour hire slotted into the agreement despite claims by Kagan that the union demands are not permitted because they do not relate to permanent employees.

But Commissioner Donna McKenna upheld NUW claims that extensive use of casuals and labour hire could lead to a "threat to permanent employment" and therefore affect job security.

"…a case has been established that the protected action ballot order should be granted," McKenna says.

"The matters being proposed by the NUW…are permitted matters in as much as they involve matters pertaining to the relationship between an employer that will be covered by the agreement and that employer’s employees who will be covered by the agreement."

The union wants Kagan to limit the use of casuals to 15 percent of its workforce, but says it can be exceeded in exceptional circumstances and after consultation with NUW representatives.

The union also wants labour hire workers bound by the enterprise agreement and to be given the option of permanent employment after six months of regular work.

If accepted, the provisions will give the NUW a say in which labour hire companies Kagan uses and allow it to attend induction sessions.

A privately-owned family business based in Victoria, Kagan operates interstate and merged with four other companies under the banner of Silk Logistics in 2008.

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