The AMWU has welcomed Labor’s announcement of the ‘Fair Entitlements Guarantee’ as an important reform to protect the financial security of workers whose companies collapse without funds to pay out leave, superannuation and redundancy entitlements.

The AMWU has been campaigning for reform to the General Employee Entitlements Redundancy Scheme (GEERS) set up by the Howard Government after the collapse of Ansett and National Textiles in 2001.

The old scheme left many long-serving employees many thousands of dollars short of what they were owed, at the same time as they faced unemployment.

AMWU National Secretary, Dave Oliver, said that the new guarantee would mean that workers were no longer left to bear the cost of companies who failed to set aside entitlements.

“We have seen thousands of workers loyally serve their employers only to be told that the company has gone out of business and there is no money left,” he said.

“The outcome for workers has been the double-whammy effect of unemployment after many years with an employer and no money to sustain them while they look for new work.

“The new ‘Fair Entitlements Guarantee’ will provide security to thousands of families around Australia.”

The AMWU also welcomed the increased responsibilities to be placed on management regarding superannuation payments, as well as the strengthening of corporate law and ASIC’s powers to prevent sham contracting and ‘phoenix’ company arrangements.