BY ALEX BAINBRIDGE
HOBART — The Australian Manufacturing Workers Union (AMWU) has called for a 5% pay rise for Incat workers, following the July 24 announcement that Incat has won a contract with the US military. The contract involves chartering a high-speed catamaran for two years to be used by the US army, navy and coast guard.
Incat has been negotiating to supply up to 40 new ships to different sections of the US military forces. This contract is a trial which, if successful, will increase Incat's chances of winning more US military contracts. Incat has already negotiated a partnership with a US boat-building company, thus fulfilling the domestic production requirements that the US demands of contractors. This partnership may threaten the jobs of Incat workers in Australia, even if the deal is achieved.
Although the contract is worth $40-$50 million dollars, and is likely to bring dramatically increased profits to Incat, company chairperson Robert Clifford responded to the union claim by saying he was "incredulous" that the unions even mentioned it. The last pay rise Incat workers received was around $8-10 per week in December 1999.
Incat's rejection of the pay demand comes on top of 100 forced redundancies and 150 voluntary redundancies at the company in the last couple of months. Prior to the redundancies, the AMWU estimated that a pay rise and shorter work-week would cost the company around $2 million per year.