Category: Small Business / Company News / Telecommunications

Remaining Russell-Smith workers sacked by administrator

Monday, 26 Sep 2016 10:39:32 | Laura Beavis

The remaining workers at troubled Tasmanian company Russell-Smith have been sacked by the company's administrator, the Communications, Electrical and Plumbing Union (CEPU) says.

The electrical and communications company declared insolvency last week, two years after being bailed out of receivership.

Michael Anderson from the CEPU met with the administrator from Sydney firm Jirsh Sutherland in Hobart.

"Unfortunately, the administrator has said they cannot continue trading the company, so they're going to terminate all employees employment as of now," he said.

"We're only talking around 15 to 20 employees in the north of the state, as over the last couple of months there's been mass resignations because people have been fed up waiting for their entitlements."

A letter will be sent to the remaining workers, formally terminating their employment, but union officials relayed the news.

Launceston-based electrician Lance Bergman said it was disappointing but not surprising to lose his job.

"Some of us have got jobs to go to, and some of us haven't," he said.

"I feel a bit sorry for the younger guys with their families, and the apprentices."

The administrator issued a statement soon after the union comments, confirming the sackings.

It said outstanding employee entitlements wee being calculated and would be forwarded in the next few days.

The company said information about support services would be made available, as well the Federal Government scheme to help claim unpaid entitlements.

Earlier, employees had spoken of their frustration at a crisis meeting in Launceston.

The CEPU said the firm owed hundreds of thousands of dollars in entitlements to current and former workers.

Electrician Lance Bergman and 20 other workers attended a meeting with a CEPU official in Launceston.

He said he was angry his superannuation and long service leave entitlements had not been paid in months.

"We've got a protected insurance scheme, and income insurance scheme … it hasn't been paid at all since the first of April, the last time I checked," he said.

"As a consequence of that we can't work, we can't work on site."

Burnie electrician Charlie Warren said most of his colleagues quit months ago because of uncertainty about the company's future.

"All of us have known in the back of our minds since literally the end of February that this was coming," he said.

"To get an answer from anybody in management about what was happening, where we're going, how we're going to get out of where we are, just wasn't forthcoming and it's just been so frustrating."

Foreman Jamie Fenton said he wanted to know what went wrong.

"I want answers from the correct authorities to how this can just keep ticking along and getting worse," he said.

"I feel for all the people out there that are owed money from this company, which I know there is a lot."

CEPU said Russell-Smith owed at least $1 million to creditors.

Union officials will meet the administrator, Sydney firm Jirsch Sutherland, in Hobart later today.

Company denies union's claims

Russell-Smith had earlier rejected union claims that it owed workers hundreds of thousands of dollars in entitlements.

The company said CEPU had tried to destabilise Russell-Smith, and that workers' entitlement payments would be brought up to date.

Russell-Smith also disputed claims it had been kicked off major building projects, saying it had voluntarily withdrawn because it was owed money.



 

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