Holden engine factory workers on strike

The workers at the engine factory in Port Melbourne are on strike over a dispute about forced redundancy payouts -- but production on the car assembly line in Elizabeth near Adelaide is unaffected.

About 150 dayshift workers took the sudden strike action because Holden wanted to cap the payouts in a forced redundancy program to a maximum 52 weeks of pay, regardless of length of service, News Corp Australia has been told.

The issue has come to a head because Holden did not get the 100 voluntary redundancies it was hoping for. The recent voluntary program did not cap the redundancy payout but workers were holding out for a higher amount at a later date when the V6 engine plant eventually closes.

But the move backfired as Holden applied to Fair Work Australia to issue compulsory redundancies.

A statement from Holden said: "Holden and its unions have been in the Fair Work Commission during the past week to resolve differences regarding about 30 planned involuntary redundancies at Holden's Melbourne engine plant and engineering trade operations.

"The redundancies are required because a voluntary redundancy program earlier this year failed to achieve the necessary numbers despite a lengthy process.

"It is regrettable that some of our employees have decided to take this industrial action while the matter is resolved through the Fair Work process."

SA secretary for the Australian Manufacturing Workers Union, John Camillo, said there were "no plans" for vehicle assembly workers to walk off the job at Elizabeth.

News Corp Australia understands Holden has a stockpile of V6 engines to last at least a week if the dispute continues.

This reporter is on Twitter: @JoshuaDowling