Affco should not have reduced pay, court finds

A dispute between the Meat Union and the Wairoa Affco plant is a step closer to resolution following an Employment Court decision.

In November 2007, the Meat Union and Affco entered into an agreement for the operation of the beef boning and beef slaughter following redevelopment of this area of the plant.

This was a trial agreement and the union and company were unable to agree to a new agreement at the end of the trial period.

After some weeks, Affco reduced pay to each worker by $50 and this was not agreed, the court found.

When the union tried to enforce the agreed pay rates, Affco argued that the agreement had expired and they were not obliged to pay the rate set in the agreement.

Affco continued to apply all the other provisions in the agreement.

The Employment Court found the trial agreement continued after the expiry date and Affco therefore was unable to reduce pay rates.

"It was a kick in the teeth for Affco workers to have their pay reduced by $50 a week. This is a lot of money for working people," said Meat Union organiser Eric Mischefski.

Workers agreed to particular pay rates and Affco wanted to have the same work for less pay, he said.

"The decision recognises that workers cannot have their pay cut by the company acting unilaterally and that collective agreements are negotiated by the parties until something new is agreed."

Affco company and the union have been encouraged to discuss the matter and to negotiate over the next six weeks.

If discussions are not successful, the matter will be heard further in the Employment Court to determine the entitlement of the meat workers.

Affco said they did not want to discuss the case.

- NZPA