Holden workers vote for pay freeze

Holden workers in Adelaide have voted in favour of a new enterprise agreement. Source: AAP

HOLDEN workers in Adelaide have voted in favour of a new enterprise agreement that could save the car maker's Australian operations.

About 1500 staff at the Elizabeth assembly plant cast their votes on Tuesday backing their revised agreement which includes forgoing pay increases in a bid to save the company $15 million a year in labour costs.

Without the savings, and without ongoing financial assistance from the federal and state governments, Holden has indicated its local manufacturing operations will close, probably in 2016.

Australian Manufacturing Workers Union state secretary John Camillo says the vote was decisive but has declined to release the numbers.

The new agreement does not include the 10 per cent pay cut the company initially called for, though a three per cent increase scheduled for November will be cancelled.

It will also cap redundancy payments for new staff and provide for new shift arrangements.

For the new agreement to come into force Holden workers in Melbourne will also be asked to vote in favour later this week.

But as the changes will not apply to them and most are expected to abstain, allowing the Adelaide vote to stand.

The new deal is also conditional on Holden committing $1 billion to design and build two new cars in Australia from 2016.

A Holden spokesman said no comment could be made until after the vote was finalised in Victoria.

"The vote is taking place across several sites over four days, in both South Australia and Victoria," he said.

"We have a voting process in place that we are following and plan to announce the final results on Friday afternoon, August 16."

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