The rejected agreement covers 570 employees who are represented at the two sites by the ETU, AWU and AMWU.
In line with government advice, Thales has advised the three unions their new agreement must be code-compliant despite their employees being classed as manufacturing workers and not construction.
“They are not building workers, they make bullets, bombs and shells,” Electrical Trades Union Victoria Secretary Troy Gray said.
Mr Gray believes the move is aimed at reducing wages. But the assertion is strongly rejected by the Federal Government which claims there had never been any move towards reducing wages and that the agreement would in fact, provide a wage increase.
“Commonwealth-funded building work must be compliant with the Building Code, which ensures best practice regarding workplace relations, worker safety and zero tolerance for drugs and alcohol,” a spokesperson for Thales said.
“Legal appliance is essential for Thales to continue to win Commonwealth contracts and to provide job security to our workforce.”
No final EBA proposal has been put to the overall 680-strong workforce at the Benalla and Mulwala sites according to the Thales spokesperson.
A Department of Jobs’ spokesperson said the government had no involvement in workplace agreements.
“Bargaining is entirely a matter for the relevant bargaining parties,” the spokesperson said.