Australia-Last chance for states largest meat plant in WA.

HARVEY Beef has offered workers a new, shorter pay deal after they narrowly rejected tonight a three-year agreement that cut wages for some staff.

Meat workers tonight voted 115-99 against a three-year collective agreement which would have seen see a quarter of employees face pay cuts of up to 20 per cent.

But after the vote, the company issued a statement saying it had agreed with the Australian Meat Industry Employees Union to recommend a new, two-year, agreement to staff.

"This Agreement will enable the company to regain the cost competitiveness it must have for its long term sustainability," the statement said.

A spokesman for Harvey Beef said after the vote tonight that the new proposal also preserved some benefits at previous pay rates for those staff facing cuts under the deal.

That agreement is to go to a vote next Wednesday.

The spokesman said the union, which had recommended workers reject the deal voted on today, had agreed in principle to recommend the shorter deal be accepted next week.

"We’re confident that with the union’s endorsement it wil be accepted by the workers," the spokesman said.

Workers also voted against the three-year proposal on March 6, and days later 160 workers were sacked from its plant south of Perth.

But the Harvey Beef spokesman said before the vote today he would not speculate about job losses, or the possible closure of the company.

He told PerthNow Business that if the agreement failed "there would be some tough decisions to be make".

Pay parity sought

The collective agreement voted on today was aimed at bringing pay rates of Harvey Beef workers in line with the eastern states, which means some workers will even get pay increases.

"Some workers will actually get a slight increase, I’m not pretending it’s a large increases, but it’s reflective of the company’s desire to equalise pay rates with eastern states competitors," the spokesman said.

Graeme Haynes, Secretary of the Australasian Meat Industry Employees Union, said before the vote today that workers should think very seriously before voting yes to the collective agreement.

"This will lock these workers into a contract of employment for a period of three long years," he said.

"Should there be a turn around in the market they will be forced to endure conditions that were determined at the bottom of the market.

"That would be grossly unfair."

But Mr Haynes said the company may turn to sacking more staff or even closing the plant if workers voted against the agreement.

"It’s a possibility for Harvey Beef, but we think that would be a very unwise option, because it may well place the company up for sale," he said.

"Harvey Beef is the state’s largest beef processor, I feel sure that should that place close, there would be other companies that would be in the market to tender for it.

"At the end of the day, the argument of simply demanding employees surrender pay and conditions is not a solution - it’s poor management."