Laid-off workers win federal reprieve

Hundreds of sacked workers at two Australian companies will receive millions in unpaid entitlements as a priority after a meeting between union officials and the federal government.

Truck drivers from collapsing Sydney-based trucking company 1st Fleet will have access to their entitlements sped up, as will workers made redundant at two CMI Industrial sites in Melbourne, through the government’s GEERS program.

“After receiving clear advice from administrators today that CMI and First Fleet will go into liquidation, we can now move to ensure workers can access GEERS assistance faster,” Federal Employment Minister Bill Shorten announced on Thursday.

“My department is in contact with the insolvency practitioners to arrange expedited access to GEERS claims and payments.”

The news came a day after Australian Manufacturing Workers Union (AMWU) delegates had met Mr Shorten in Canberra.

“He’s taken a very proactive approach to this,” AMWU assistant state secretary Leigh Diehm said of the successful meeting.

The western Sydney-based 1st Fleet went into administration in April with the federal government estimating that 450 people lost their jobs across NSW, Victoria and Queensland.

At CMI, workers were locked out of the company’s Melbourne factory in Campbellfield last month as a rent dispute with the landlord boiled over, leading to 1800 Ford workers being temporarily stood down as a key supply chain dried up.

About 42 CMI workers made redundant as the company went into receivership will now receive GEERS funding.

Details were being finalised, but workers were likely to receive smaller initial payments to keep them going before their full entitlements could be paid, Mr Diehm said.

Ordinarily, GEERS payments cannot be made until a company goes into liquidation, which is unlikely to happen before receivers next meet CMI’s creditors on May 30.

But Mr Shorten said he was confident in using his discretion in these two exceptional circumstances.

Access to GEERS funding will allow workers to recover up to three months of unpaid wages and unpaid leave, among other entitlements.

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