Rudd Government Must Act To Fully Protect Workers' Entitlements

Media Release

Wednesday July 29th 2009

Government Must Act To Fully Protect Workers' Entitlements

In the lead-up to the ALP National Conference the National Union of Workers NSW Branch (NUW) is calling upon the Rudd government to put in place adequate legislative protection for workers' entitlements with penalties for companies and company directors who do not pay out entitlements or adhere to superannuation requirements.

This follows the sacking of ten workers who have not been paid any of their entitlements or superannuation because the employer did not put aside statutory entitlement payments or contribute to any superannuation fund.

Management of Enricho's Kitchen, a division of Cumberland Industries, which was placed in administration earlier this year, short-changed workers at their Wetherill Park site by not paying any entitlements or superannuation. The business has now been taken over by a new owner who has added insult to injury by cutting ten jobs at the site leaving workers with empty pockets.

Mark Ptolemy, spokesman for the NUW said that over $160,000 in statutory entitlements and nearly $300,000 in superannuation is owed to the dismissed workers but current laws do not guarantee that they will get any of what is rightfully theirs.

"This situation highlights the necessity for the Federal government to get serious about legislative protection of workers' entitlements and stop ignoring this issue.

"There needs to be proper penalties in place for companies and company directors who do not pay out entitlements and who do not adhere to their responsibilities on superannuation contributions", Mark Ptolemy said.

The Union is also asking the new owners of Enricho's Kitchen to reinstate the ten workers to reduce the trauma caused to them and their families.

"This is a dreadful circumstance in which ten families have been betrayed by their former employer. Cumberland Industries have just walked away from their responsibilities without any fear of being penalised.

"Tomorrow at the ALP National Conference, Kevin Rudd & Julia Gillard will be singing the praises of the government, but that is of little help to these workers and many like them who have lost not only their jobs but their entitlements and superannuation because the laws protecting them are weak.

"We are asking them to do the right thing and put in place laws that will fully protect workers' entitlements", Mark Ptolemy said.

Ends.

For further information contact:
Mark Ptolemy on 0414 993873 or (02) 9682 4622

The NUW covers workers employed in warehousing and logistics, food manufacture, pharmaceuticals and other industries.

SOURCE: National Union of Workers NSW Branch