Nearly 600 workers from three auto-component factories walked off the job on Friday (July 14) after administrators announced the loss of 122 jobs without any money for entitlements.

The factories in Bendigo, Frankston and Dandenong, are owned by Huon Corporation, which went into voluntary administration two weeks ago, with workers owed more than $30million in entitlements.

Administrators announced on Friday that 108 jobs would go from Empire Rubber in Bendigo, and 14 from Mills Elastomers in Dandenong, with more jobs set to be axed from FRN in Frankston, with no money for entitlements.

National Union of Workers Victorian State Secretary Antony Thow and Australian Manufacturing Workers Union Victorian Secretary Dave Oliver said workers have determined to take control of the factories and are not prepared to release any assets until full entitlements are secured for redundant workers.

NUW State Secretary Antony Thow said members had little choice but to take control to send a message to Huon Corporation, and former owners Nylex (who sold the businesses late last year), that they could not shirk their corporate and moral responsibilities towards the 122 loyal and long-serving employees. 

AMWU State Secretary Dave Oliver said the workers will not be eligible for the Federal Government’s GEERS scheme which is meant to provide a safety net for workers in just this sort of situation.

The Howard Government changed the regulations governing GEERS last November, so now workers can only access the scheme if their company declares bankruptcy or goes into liquidation, not when the employer is in administration; a disgraceful situation, according to Mr Oliver.

“Government and car companies have got a responsibility to make sure these workers and their families don’t get left behind while this company goes under,” Oliver said. 

“This is exactly the sort of situation the Federal Government’s GEERS scheme was set up for – to assist workers whose companies cannot meet their redundancy obligations. 

“But last November the Federal Government changed the rules so a company must be in bankruptcy or liquidation before employees can access the scheme.

“This change was quietly snuck in under the radar as John Howard launched his wholesale attack on workers’ right. Now we have 122 workers who, through no fault of their own, walk away from jobs with nothing. 

“The Federal Government should rectify this situation immediately so innocent workers like these cannot fall through the cracks. GEERS will in no way compensate them for what they have lost, but at least it is something.”

“This is an extremely distressing situation for everyone involved,” Thow said.  

“There appears to be a history of mismanagement of these sites, and the circumstances surrounding the eventual sale of the businesses pose some extremely troubling questions. 

“We believe Nylex owed its employees a duty of care to sell these businesses to a company with the capacity to properly manage the factories and had the wherewithal to meet all entitlement obligations. This certainly isn’t the case here.

“Nylex should bear some responsibility for this appalling state of affairs.

“We will continue to fight with everything we have to secure the entitlements for our members, and will work with administrators SimsPartners to try to secure the sale of the factories to save as many jobs as we can.

“But quite frankly these workers never should have been put in this perilous position in the first place.”