MEMBER for Indi Cathy McGowan had no knowledge of a looming major restructure of Bruck Textile Technologies when she spoke in support of the Wangaratta company in federal Parliament last month.
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Ms McGowan lashed the federal government on June 5 for a budget cut to manufacturing grants, which had delivered $500,000 and 15 jobs at Bruck.
Five days later Australian Security and Investments Commission records show the company name Australian Textile Mills was registered by Bruck’s principal shareholder Philip Bart and company chief executive Geoff Parker.
Friday last week, Bruck was bought by Australian Textile Mills for a token $1 in a move that left 60 workers without a combined $3.8 million worth of entitlements.
Ms McGowan said she had planned to visit Bruck that day as a follow-up to her Parliamentary speech, but it was cancelled at the last minute.
“What shocked me was how this all happened,” she said.
“It is a very bad situation, but what has worked really well is all the systems are in place.
“I think they have been in trouble for a long time.
“The minister referred it to ASIC, as he should.”
Employment Minister Senator Eric Abetz confirmed on Monday his department had referred a “contrived” business arrangement to avoid paying entitlements to workers to ASIC.
Ms McGowan also congratulated her predecessor Sophie Mirabella for contacting Senator Abetz about the situation.
“What a good thing for her to have done by ringing up the minister,” Ms McGowan said.
“She has got such a passionate interest in the whole thing.”
Ms McGowan said she had spoken to Australian Textile Mills management late this week and expected the 130 workers who received letter of offers to appear at work on Monday.
She also asked for a commitment to employ some of the former workers if all the positions were not taken up.
Ms McGowan said she had briefed Opposition Leader Bill Shorten about the Bruck situation.
She has also written to Industry Minister Ian MacFarlane about potential future projects in the North East that could generate jobs.
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SACKED BRUCK WORKERS MUST PROVE THEY ARE BROKE
NEVILLE French thought things were as bad as they could get after Bruck sacked him after nearly 40 years of service.
The cleaner, who was a machine operator before he injured his back, faced the prospect of living from day to day.
But yesterday there was more bad news.
The plant’s new owner, Australian Textile Mills, said its hardship fund for the 60 sacked workers was not a fund but a loan.
Textile Clothing and Footwear Union national secretary Michele O’Neil said the owner had said workers had to prove hardship to access it.
“This is unacceptable,” she said.
“All 60 workers have experienced hardship since losing their job and not seeing a cent of their entitlements.
“The union believes this money should be a grant and not a loan.
“It is a week since workers were stood down — they literally have no money for food, rent or their mortgage.”
Bruck Textile Technologies, which went into liquidation eight days ago, sacking 60, will re-open on Monday in its new entity with 130 workers.
That’s cold comfort for Mr French, 55, who was one of 1000 workers at the plant when he started there aged 16.
He and the other sacked workers were left without entitlements of $3.8 million when Bruck sold the plant for $1.
“There’s no money coming in and we don’t have much in the bank in the first place,” Mr French said yesterday.
“We are basically living day to day.”
Bruck appeared before a Fair Work Australia commission hearing on Wednesday and was asked to explain how the dismissed workers were selected and the links to their length of service.
For Mr French, it is now a waiting game.
“There’s no money coming in until Centrelink kicks in and there’s no saying when that will be,” he said.
Mr French has applied for the federal government’s Fair Entitlements Guarantee but has been told it could take 10 weeks before he receives anything.
Mr French lives with his wife, Monica, and their younger child, 18.
“My wife does not work as she stayed home to raise the kids,” he said.
“She will now have to start looking for a job.”