The AMWU has called for urgent meetings with administrators, major car companies, and the federal and state government to protect the livelihoods of nearly four hundred workers after auto components factory ACL Bearings was put into receivership today.

While no job losses have been announced and the company will continue to trade, up to $30 million worth of workers’ entitlements are at stake in the company. The company employs around 270 workers in Launceston and the remainder in Brisbane.

“The first priority for all parties must be to minimise job losses and to ensure that any workers who are made redundant receive 100% of what they are owed,” said AMWU National Secretary Dave Oliver.

“We will maintain ongoing conversations with the new receiver-managers and are hopeful that a plan can be found to make ACL Bearings a sustainable company once again.

“These workers voluntarily took a 20% pay cut in February and have done all they can to keep this company going.

“But now after all their work and commitment they stand to lose entitlements that represent their life savings.

“The bigger tragedy is that we see this situation repeated time after time.

“This is the third auto components company in one week including Metaltec and Flexdrive where administrators or receivers have been appointed and employee entitlements are at risk.

“That is why we need to change the system for worker entitlements in Australia to ensure that workers don’t lose out every time we get a situation like this.

“The AMWU is calling for a national scheme to guarantee 100 cents in the dollar for all employee entitlements. This could include:
•     A universal insurance scheme to cover employee entitlements, managed nationally or industry by industry
•     A pay as you go contribution plan as exists in industries like building and construction
•     Legislation that ranks employee entitlements above secured creditors