About 100 workers at the Campbellfield factory have been picketing since last Friday in their fight to reach agreement in the current enterprise bargaining process.

The plant, which produces seatbelts and airbags for Ford and Toyota, once employed more than 400 workers. But since 2006, staff numbers have fallen due to redundancies.

Australian Manufacturers Working Union organiser Chris Spindler said the company had offered a 0.2per cent increase in the first year and a 1.8per cent increase in the second year. But the offer was "not good enough" for the employees.

"We feel that is not even keeping pace with inflation, let alone living costs," Mr Spindler said. "The company has always had high expectations of its workers, who are flexible with the ability to move from machine to machine.

"Their value to the company has increased but their pay isn't."

Mr Spindler said the company had cited the economic crisis as the reason for its low pay increase offer. They also seek to remove an early finish clause which was implemented in place of a five-minute, hourly exercise break.

"People are pretty annoyed. We have been negotiating for months and are at the end of the road now. Nobody wanted to strike."

Demet Oz, 39, who has worked as a process worker at Autoliv for 13 years, said she had to support her family.

The Craigiburn resident was "sad" that the company had offered such a low increase.

"It has been such a good company to work for and we're sad that things have come to this. But they've told us they don't have the money to pay us and they are trying to use the economic downturn to scare us."

Attwood resident Kim Ferris, 43, who has worked for Autoliv for 21 years, said she was disappointed with how management had handled the process.

"It's bringing out some very bad blood. They are telling us they need to cut costs, but management are still going on their ski holidays and the workers are bearing the burden."

Thomas Fernandez, 38, from Mill Park, said the pay rise was "very important" to ensure he could pay his mortgage and continue to support his wife and two children. He has worked for the factory for 11 years.

"I feel bad about the offer - they are kidding."

Autoliv human resources manager Diana Jovcevska said the company would not comment while it was in the middle of negotiations.