FED: Union walks out on creditor talks

AAP General News (Australia)
02-10-2000
FED: Union walks out on creditor talks

By Natalie Davison, Industrial Reporter

SYDNEY, Feb 10 AAP - Sacked Hunter Valley textile workers today were no closer to getting
their full entitlements after their union walked out of talks with creditors.

The Textiles, Clothing and Footwear Union said Oldtex, one of two main creditors of
the defunct National Textiles company, attempted to renege on an agreement, reached during
talks yesterday, to repay workers' entitlements.

Union assistant state secretary John Owen said a creditors meeting in Newcastle voted
yesterday to push for the sale of machinery and National Textiles' Rutherford plant to
repay the 342 workers the $7 million owed in entitlements.

"During that meeting, a representative of Oldtex was present and agreed to the resolution
that the administrator push for the sale and repay workers their (full) entitlements within
one month," he told AAP.

"But during today's meeting Oldtex tried to drag out that agreement for three or four months."

"We virtually staged a walkout because there was no point continuing talks," he said.

"We've told them we don't care who does it, but Oldtex and Scottish Pacific have to
come up with an arrangement to find the funds to repay the workers."

Oldtex could not be contacted for comment.

Mr Owen said the main creditor, Scottish Pacific Fund, refused to join today's talks
and had agreed to meet only with union representatives tomorrow.

He said Scottish Pacific was the only creditor who did not attend or vote on the agreement
yesterday to repay workers within a month.

The federal government earlier this week agreed to give $4 million to compensate for
lost entitlements to the sacked workers, who are owed a total of $11 million.

"The government has come to the rescue and found $4 million to help workers and come
up with the balance, but now (creditors) are playing corporate games," Mr Owen said.

Payment of the remaining $7 million owed in entitlements rests with the sale of the
plant and machinery to Bruck Textiles.

Scottish Pacific has previously expressed concern about the sale.

Meanwhile, the federal government today announced the Australian Securities and Investment
Commission would conduct a formal inquiry into National Textiles operations.

AAP nd/sb/ah/br n

KEYWORD: SACKED CREDITOR NIGHTLEAD

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