Written by Jonny Williamson
The 80 workers at the CMI plant in Melbourne have been locked out since last week after the landlord changed the locks due to a rental dispute. CMI is one of Ford’s key suppliers and the knock-on effect of their receivership is being felt today by 1,800 Ford workers who have been told to not turn up to work until at least Wednesday of next week.
As administrators attempt to help CMI survive their current financial woes, over AUS$150,000 in unpaid rent and thousands more in utility bills, in the meantime Ford’s two Australian plants have been gradually running out of parts.
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Ford spokeswoman, Sinead Phipps has stated the workers will receive 50 percent pay for the forced downturn which they can top up with annual leave. Phipps went on to say:
“We won’t be producing cars on Friday, Monday or Tuesday. Obviously the whole process needs a bit of time to happen before we can start our production again.”
CMI supply Ford with parts such as seatbelt restraints, air bags and suspension components, but with the closure of Ford’s operations set to last almost a week, the impact could be felt by the many other companies who rely on contracts to supply Ford with parts.