Ajax workers guaranteed some money, says Andrews

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Ajax workers guaranteed some money, says Andrews

Workplace Relations Minister Kevin Andrews has hit out at claims that workers at car part manufacturers Ajax would not have their interests looked after if the company goes into receivership.

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Workplace Relations Minister Kevin Andrews has hit out at claims that workers at car part manufacturers Ajax would not have their interests looked after if the company goes into receivership.

A deal between major vehicle manufacturers and Ajax to keep the company going in the short term collapsed yesterday and the workers are staging a sit-in strike to try to keep company assets from being removed.

They are allegedly owed $12m in entitlements.

Andrews criticised the Secretary of the Victorian Branch of the AWU, Cesar Melhem, for saying: 'It's about time workers interests were put first before secure creditors, before the tax office, before anyone else'.

Employees first

'The fact is that's exactly how the General Employee Entitlements and Redundancy Scheme (GEERS) operates,' Andrews said.

'The employees will be looked after first if the company goes into liquidation because the Government has guaranteed their:

  • Unpaid/underpaid wages
  • Unpaid annual leave
  • Unpaid long service leave
  • Unpaid pay in lieu of notice, and
  • Up to 16 weeks of unpaid redundancy entitlements.'

If the Ajax issue is not resolved mass stand-downs and cuts in production are expected in vehicle manufacturing plants in Victoria.

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