http://www.news.com.au/headlines/
Reith revs up for car union clash

By SID MARRIS

6apr99

THE Howard Government has been secretly targeting the automotive industry
for a campaign to reduce union power but has yet to win support for a
serious confrontation.

While Workplace Relations Minister Peter Reith has openly listed
construction, coal mining and meat processing as target industries for
reducing union influence, for the past year he has been investigating
forcing change at the plants of leading car manufacturers.

The Australian has learned that prior to the 1998 election, plans were
being drawn up for detailed studies of work practices in the automotive
industry as a precursor to a campaign on workplace issues.

This followed government anger that companies had not embraced the changes
in the Workplace Relations Act after being granted a tariff freeze for five
years from 2000 and an industry assistance package worth up to $2 billion.

It also is understood carmaker Toyota was being pressed earlier this year
to take on its unions, mainly the vehicle division of the Australian
Manufacturing Workers Union, but has since declined to become involved in a
showdown.

A spokesman for Mr Reith insisted yesterday the automotive industry was not
being targeted but said discussions had taken place to look at improvements
in the light of the tariff and assistance decisions.

"It is up to the companies to be innovative. We don't want confrontation,"
he said.

But Opposition spokesman Arch Bevis said the Federal Government was
attacking a peaceful industry for the sake of "blind ideology".

A departmental briefing note written in September indicates that Mr Reith
and then Industry Science and Tourism Minister John Moore had agreed to
hold discussions with automotive manufacturers about a labour study.

The note highlights disquiet expressed in government circles in 1997, when
the key industry decisions were made, that the industry was too close to
its unions. A Toyota spokesman said the company was unable to comment at
this stage.


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