NUW Victorian State Secretary Antony Thow has hit out at the Federal Government and Department of Employment and Workplace Relations over the delay in paying nearly 250 retrenched employees from the failed Huon Corporation their GEERS entitlements.

Despite applying for GEERS in October, and being promised payment by the first week of December, these workers from Empire Rubber in Bendigo, Mills Elastomers in Dandenong and the now defunct FRN in Frankston have been forced to wage a community campaign to get any answers regarding when they might receive any money from the safety-net scheme.

Liberal Senator for Victoria Michael Ronaldson made an announcement at the Empire Rubber site today (December 11, 2006) that all GEERS money would be paid by Christmas, but Thow said that announcement was too long in coming.

“This is a disgusting situation,” Thow said. “While the Government has finally given us some indication when this money will be paid it should not have got to this situation in the first place.

“Michael Ronaldson wants to score political points through his announcement today but I have to ask where has he been for the last six months? Where was he during the 10-day community protest back in July when we and our members fought so hard to save the company and maintain as many of their jobs as possible?

“Where has he been since October when we have been trying to determine just when our members would finally receive their GEERS payments?

“Where was he last week when we and our members were forced to institute a community campaign to find out some answers?

“These 250 families should not have had to endure weeks of uncertainty like this, they deserve better than that.”

Thow said the fact it had taken so long for the workers to be entitled to GEERS was the fault of the Federal Government’s law changes at the end of last year.

Once workers could access GEERS payments when a company was in administration, but now they must wait until a company is in liquidation or bankruptcy for the safety-net scheme to kick in.

“This meant that these workers who were made redundant in July could not even apply for GEERS until the company went into formal liquidation in October,” Thow said.

“During that time the NUW worked tirelessly with the now liquidators (SimsPartners) to sure-up the $30million in entitlements for Huon Corporation employees.

“During the 10-day dispute we managed to achieve a $10 million injection into the businesses to keep the doors open and ensure some entitlements could be met.

“We also arranged with SimsPartners for those made redundant to receive $4000 to help in the short-term, and we have worked with the liquidators to help find a buyer for Empire Rubber and Mills Elastomers to try to save the remaining jobs.

“But for those workers who have already lost their jobs, times are tough, and they need help while we try to recover all of their entitlements.”

Thow also slammed the Government for using the existence of an insurance bond as the reason for non-payment of GEERS.

“It is absolutely outrageous that Workplace Relations Minister Kevin Andrews, Senator Michael Ronaldson and the Federal Government hid behind the insurance policy as a reason for delaying paying GEERS.

“We had an obligation to delay making a claim on the insurance bond until the shortfall on funds had been fully established. This has now occurred and we expect such a claim will be made within the next 48 hours.

“After meeting with the trustees of the insurance policy DEWR was fully aware of the situation with regards to the bond and understanding of the difficulties involved and, to use this now as an excuse for causing nearly 250 families more hardship and distress is a disgrace.

“The simple fact is only one group of people is responsible for this delay and that is the Federal Government. No matter what spin Kevin Andrews and Michael Ronaldson put on it DEWR had a responsibility to process these claims as quickly as possible but instead it took a concerted union campaign by the NUW and our members for the Federal Government to act.

“These companies were neglected by their two previous owners – Nylex and Huon Corporation – and it has been the NUW, liquidators, and the employees who have done the work to resurrect the businesses and recoup some of the lost funds.

“All we asked for was a little assistance from the Government through GEERS – the same assistance John Howard gave to his brother when his business failed all those years ago – and instead these hardworking families have hit road block after road block.

“Hopefully after today the path to them getting on with their lives has been made a little clearer.”