Federal opposition leader Bill Shorten has derided the Abbott government for having a "desolate and sterile" vision for the country, after reports it tried to force wage cuts on SPC Ardmona workers.
Before refusing to provide the food processor $25 million in assistance, the coalition reportedly pressured the company to slash workers pay by as much as 40 per cent.
Fairfax says workers at the Shepparton plant faced cuts of up $30,000 a year under the government proposal to put them on the award.
Following the government's decision not to provide support to the company, Prime Minister Tony Abbott and Treasurer Joe Hockey both complained about over-generous pay conditions.
Mr Shorten lashed out at the government on Thursday for trying to lower wages at the factory in Victoria's Goulburn Valley.
"How desolate and sterile is a vision of the Abbott government that they say that someone on $50,000 should take a pay cut to $33,000," Mr Shorten told the Melbourne Press Club on Thursday.
"These people are not over paid.
"The fat cats don't work on the factory floor."
Comment is being sought from Industry Minister Ian Macfarlane.
