News

The finance company GE Australia appointed receivers last Wednesday after it appeared that SEP Print in Glen Waverley, Victoria, was going to have trouble meeting its repayments.

The workers were all dismissed without notice on Thursday.

AMWU Victorian Secretary Steve Dargavel said that the workers were devastated to be told without any warning that they were sacked and there was no money in the bank.

“We have yet another unfortunate situation where workers are the ones left in the lurch owed hundreds of thousands of dollars in entitlements.”

The union has ensured that the employees were listed as creditors and they are set to receive assistance through the Federal Government’s General Employee Entitlements and Redundancy Scheme (GEERS).

Mr Dargavel said that long serving employees had the most to lose.

“The GEERS scheme is capped at 16 weeks which means people who have put in many years will not get the benefit of the redundancy that they should be entitled to.”

Mr Dargavel also expressed concern at the emergence of a pattern of ailing companies seeking assistance from financiers which put them under further pressure.

“We had a situation with another company recently, where a capital loan was secured for $2million and thirteen weeks later, they owed $3million dollars to the financiers.

“That’s a pretty bloody awful deal for the company in the first place, but its worse when you consider who ends up paying for it. If it goes wrong, it ends up further reducing what workers get in their pockets.

Mr Dargavel repeated calls previously made by the AMWU for the new federal Labor Government to act to protect employees’ entitlements.

“They need to sort this out once and for all. It’s unacceptable for people who work hard all their lives to be left with nothing through no fault of their own.”

Contact Person: Steve Dargavel

Contact Email: news@amwu.asn.au

http://www.amwu.org.au/read-article/news-detail/89/Easter-occupation-bid-to-save-entitlements/