Payments to LWR workers; but from union, public

First payments made to LWR workers; but from union funds and public donations

Media release: National Distribution Union

29 May 2009

“LWR workers receive their first payments since their redundancies today, but not from the receivers, the government or Westpac. The payments to LWR union members have come from union trust funds and public donations, including the cake stall protests outside Westpac Banks over the last week,” says Robert Reid, President of the National Distribution Union (NDU).

Robert Reid is today meeting 41 union members in Greytown and Pahiatua who have been made redundant from LWR’s Bouzaid and Ballaben company which is now in liquidation.

“The workers were made redundant on 14 and 15 May and so far have only received payment for the week that they had been working,” Robert Reid says.

“For those having to go onto the unemployment benefit, payments do not start until next week. This is a horrendous week without any income at all for these people. That is why the union is making payments to workers from its own funds and public donations,” he says.

“Most workers are owed holiday pay and redundancy pay around the cap of $16,420. However none of that is guaranteed and the receiver is telling us that even an interim payment on this debt will not be made for another 2-3 weeks.

“Westpac are still refusing to meet the union. They seem to be more concerned at chasing the remainder of the $10 million that they mistakenly gave to an account holder than guaranteeing the holiday and redundancy payments to workers from the companies they have put into receivership.

“The Government has now agreed to support worker run redundancy support programmes for LWR workers. A redundant workers’ resource has already started in Christchurch and support networks will be organised at today’s meetings in the Wairarapa,” he says.

“Similar meetings to distribute donations to the 36 LWR Christchurch union members made redundant on 15 May will be held next Tuesday 2 June,” Robert Reid says.


ENDS

© Scoop Media