CLOSE to 250 workers at a gearbox factory in southern NSW are likely to be made redundant following the company going into receivership.
Almost 400 staff of Drivetrain Systems International were sent home without pay on Monday.
After meeting with receivers PricewaterhouseCoopers on Friday, union representatives said 227 workers would lose their jobs, including management, plant operators, maintenance workers and finance staff.
AMWU National Secretary Dave Oliver said “workers should not be forced to bear the brunt of the global financial crisis” and said workers’ entitlements such as redundancy and annual leave are often treated as ‘interest-free loans’ to the detriment of employees.
“Many loyal workers who have been at companies for up to 20 years in some cases will have substantial redundancy or leave payments accrued.
“But if the company goes bust, employees have no guarantee that they will receive their entitlements in the rush to pay creditors and banks as priority,” Oliver said.
He explained employees often use their entitlements to survive whilst looking for new work, to feed the family or cover the mortgage payments in the period immediately after losing their job.
“Workers are vulnerable in these difficult times, and in cases where they lose their jobs, they should have full access to their entitlements,” Oliver added.
Workers are likely to be notified next Wednesday if they still have a job.