After battling to save their jobs for almost two months, AMWU members at Paragon Printing Ltd in Wodonga have voted to liquidate the company with the hope of securing a buyer within the coming week.
An undisclosed printing company has expressed an interest in buying Paragon Printing Ltd and keeping 90 employees.
AMWU members are hopeful a sale will be finalised by Tuesday.
The members are also planning to march on the offices of the Australian Securities and Investments Commission next Friday, April 30.
Paragon Printing Ltd went into administration in early March and 140 staff members are owed over $9 million in unpaid wages, superannuation, and redundancy entitlements.
AMWU Victorian Secretary, Steve Dargavel, said the union was concerned the company had been stripped of assets in order to avoid paying the workers’ entitlements, especially as the director, Amir Hyster, left the country immediately after Paragon Printing Ltd was placed in administration.
He said the workers will rally at ASIC to demand the corporate regulator take action against Mr Hyster.
“We want to know why ASIC is not taking legal cases against directors where it has been alleged by insolvency practitioners that the corporations law has been breached,” he said.
“We will have members from a range of workplaces that have been through what the Paragon Printing workers have been through and we’re going to front ASIC and demand to know why it is not doing its job.”
A report by Hall Chadwick accountants has identified offences that may have been committed by Mr Hyster as the director of Paragon Printing.
The administrators have reported their findings to ASIC.
Now that the company will be liquidated, the AMWU is demanding the corporate regulator investigate if the company was trading while insolvent and if Mr Hyster has breached his duties as a director.
AMWU members are encouraged to attend the rally outside ASIC.
“Our members are very passionate about this issue and they want answers as to why the law allows workers to be ripped off time and time again,” said Mr Dargavel.
The AMWU is campaigning for a national system that protects workers entitlements in full and holds company directors to account for their legal obligations to employees.
*Paragon Printing Ltd (Albury Wodonga) is not associated with Paragon Printers Australasia (Fyshwick, ACT).