Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

I rise to speak on the workers and families of a significant local business in my electorate of Chisholm, Australian Envelopes, which has gone into voluntary administration. Australian Envelopes has gone into voluntary administration, with 300 employees made redundant around Australia, including approximately 100 at one of its major manufacturing sites at Notting Hill in my electorate. I am very angry that Australian Envelopes went into voluntary administration, with 300 employees being made redundant, particularly as there seems to be no apparent reason why the company has taken this step of going into voluntary administration.

An article in theAge just the other day states:

WORK had been plentiful and the future seemed secure for workers at Australian Envelopes in Notting Hill.

But last Thursday at 10am they were told to shut down the machines as there was no money left and their jobs were no more in the latest job losses to hit manufacturing.

That was despite the overtime worked in recent weeks, staff said, and plenty of orders from big customers. About 300 jobs yesterday were confirmed redundant at the company nationwide, including more than 100 at its Notting Hill headquarters.

Staff have said that they were made really angry as management had kept this situation a secret. The article continues:

Married couple Bruce White and Susana Espejo, who have four children between them, were to move into their new house today but face an uncertain future. ''We don't know how we are going to pay the mortgage,'' Mr White said.

The couple, who both had worked at the company for 6½ years, may be forced to rent their new home out.

They have no idea where they will get an income and they do not know who is going to employ them.

I understand the company did not approach the government at any stage for assistance. It also did not speak to the union or its staff. I also understand the company's workforce at Notting Hill were advised of the company's entering into administration by the company's administrator, with the company's CEO being overseas at the time and the company's HR manager not being present when this tragic news was delivered.

My immediate concern is for the displaced workers and their families. The government will not leave these workers to face this alone, as the company has advised there is no money to pay their redundancies or outstanding entitlements. Established by the previous federal government was the General Employee Entitlements and Redundancy Scheme, GEERS, which enables employees to access their entitlements when they have lost their employment due to liquidation or bankruptcy of their employer and who are owed certain entitlements. Australian employees can access assistance under this scheme, and I know that we will be offering all assistance to the workers to do so. The Australian government will also provide additional support to affected workers through Centrelink and Job Services Australia. I know that Job Services Australia has already been out on site. A meeting has been arranged for tomorrow by the Australian Manufacturing Workers Union to provide the workers with as much assistance as possible regarding accessing GEERS and Centrelink as management has failed to do so.

The government considers manufacturing to be an important, integral part of the Australian economy. It is certainly an integral part of my electorate. The government remains committed to putting in place an economic framework that supports existing jobs and creates new jobs. As I have often said in this place, manufacturing is an important driver of the economy and development within my electorate and the nation in general. Sadly, these job losses do come on top of the job losses at Bosch that are going to take effect at the end of this year. We are seeing a downturn of manufacturing in my seat, but we need to be putting more in place to ensure that we do not continue to see the reduction in manufacturing jobs.

The government shares community concerns about manufacturing job losses and factory closures, particularly in regional areas but also in metropolitan Melbourne, because as soon as a factory closes it is bulldozed and houses are put on it, and no jobs can be replaced in those areas because it becomes a residential area. Land in my neck of the woods is so tight and so expensive that, as soon as the factory goes, houses go up and the jobs are lost. It is not just the jobs at this site of the 100 people; it is all the downstream people who supply into this factory who will be impacted. Under this federal Labor government we have created many, many jobs and there has been enormous job growth. I am hoping that some of these redundant workers will be able to transition into those new jobs, but I know it will be hard. Often in these areas there is an ageing workforce and it is hard to transition in. That is why I am ensuring that everybody gets every bit of entitlement they are entitled to.

I am very dark on this company for the way they have handled this. They only purchased the company last year, and it does seem like this is an asset-strip situation. The company was ongoing. The staff had no idea that this was going to be taking place.

In the time remaining I would also like to present a petition that has been accepted by the Standing Committee on Petitions from the Shop, Distributive and Allied Employees Association about Easter Sunday as a public holiday. I have previously spoken on this in this place but am receiving more and more petitions. I would like the House to take note of it.

The petition read as follows—

To the Honourable the Speaker and Members of the House of Representatives

This petition of certain citizens of Australia draws to the attention of the House that:

We therefore ask the House to:

Amend the Fair Work Act 2009 so as to include, in the National Employment Standards, Easter Sunday in the list of recognised public holidays.

from 31 citizens

Petition received.

Question agreed to.

Main Committee adjourned at 13:00, until Wednesday, 17 August 2011 at 9:30, unless in accordance with standing order 186 an alternative date or time is fixed.