Quest Over For Workers
Newcastle Herald
Tuesday March 14, 2000
THE eight-week saga at National Textiles' Rutherford plant is about to draw to a close, with union members unanimously voting to lift all bans and man the picket line on a temporary basis.
Sacked Textile, Clothing and Footwear Union employees who met at the picket line yesterday were told by union officials they had done their job and set a benchmark for all other Australian unions in their quest for full entitlements.
Word also came that $140,000 worth of fireproof fabric bound for a clothing company in Queensland would be released from the plant this morning. The release of the material, used in firemen's clothing, has saved the jobs of 80 Queensland textiles workers.
Sacked Rutherford workers should receive their full entitlements on Friday.
Creditors of the company announced yesterday they had signed a deed of company arrangement.
National Textiles creditors agreed last month on the deed, which would give the 342 sacked workers the $11million they were owed after the company closed in mid-January.
Union official Steve Davies said money from the sale of National Textiles assets would be made available tomorrow and he hoped money from the Federal and State government's combined $4million rescue fund would be issued on Thursday.
`Hopefully, if all goes to plan, the workers should receive payment for all their entitlements on Friday.'
He said workers would maintain their picket until they received their payment, but had opened the gates to allow creditors to remove equipment as part of the deed agreement.
`It's been a magnificent victory. It's pretty much all over bar the shouting,' he said.
`It's been a long, hard campaign but the workers have stuck together and come through victorious.'
The deed of arrangement was reached in February between the two main creditors, Scottish Pacific Fund and Oldtex.
Under the arrangement, sacked employees were to receive their full entitlements within 30 days and National Textiles' main creditor, Scottish Pacific Fund, would receive its $6.5million.
The deal meant the 500 unsecured creditors ended up worst off, getting less than 5? in the dollar from the $14million owed to them.
The fireproof cotton drill which was expected to be released from the plant on Friday afternoon will now be shipped interstate today.
Managing director of Stewart and Heaton Clothing Company Simon Stewart told The Newcastle Herald last night there was still some paper work to do before the material was removed.
`We're hoping to have the trucks there in the morning (Tuesday),' he said.
`We only received advice today.'
© 2000 Newcastle Herald