News

Mar 29, 2010

After battling to save their jobs for the past two weeks, AMWU members have brokered a deal to allow work to resume at Paragon Printing in Wodonga ahead of negotiations to sell the business.

At least 90 workers will be reinstated during the course of the week, while another 20 workers remain stood down.

AMWU member Darren Chant said the he’s pleased to be going back to work but they need more certainty and job security.

“I’m working two days this week but I’m not sure about the future. They haven’t given us a three week roster. Some of us may have two days’ work and some may have five,” he said.

“I’m still very apprehensive and every day it’s just a case of wait and see.”

Paragon Printing went into administration earlier this month and 140 staff members are owed over $9 million in unpaid wages, superannuation, and redundancy entitlements.

The company still has a number of large business contracts to create high security documents such as car registration stickers and taxation forms.

Darren believes it could still be a very profitable business and he’s hopeful that a buyer will be found.

“It’s still a sound business. There’s a small fortune to be made if the company was run correctly.”

The workers who have been reinstated have decided to contribute part of their wages to colleagues who remain stood down, while the AMWU is also making some contributions.

“We’ve just had a vote and we’ve decided that each person who works will be asked to donate $10 dollars a day,” said Darren. “It’s just to try and make it as fair as we can on everyone.”

AMWU State Secretary Steve Dargavel said production is expected to resume for three weeks while the administrators, Hall Chadwick Accountants, negotiate a sale of the business.

“Union brokered discussions between the administrator and Moore Australasia have brought about a short-term solution whereby the majority of the workforce recommenced work ahead of negotiations to sell the business as a going concern.”

AMWU organiser Leigh Diehm said Moore Australasia had agreed to pay $500,000 due at the end of the month to see production resume at the site.

In the meantime, Mr Diehm said the administrators were in negotiations with two potential buyers to take over the company.

Steve Dargavel said questions remain about the director of Paragon Printing, Amir Hyster, who left Australia four days after placing the company in administration.

“The whereabouts of the director are still a mystery. The union, creditors and the administrator are investigating allegations of numerous breaches of corporations and other law.”

He said the AMWU will continue to campaign for a national system that protects workers entitlements in full and holds company directors to account for their legal obligations to employees.

“Corporate law must be changed to ensure this situation never happens again.”

Contact Person: Jemina Wilson

Contact Email: news@amwu.asn.au