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Category: Small Business / Company News / Telecommunications

Russell-Smith workers 'frustrated, betrayed' after collapse

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

Union official Aaron Hagen address workers at a crisis meeting in Launceston. (ABC News)

Employees of a collapsed Tasmanian electrical and communications company have spoken of their frustration at a crisis meeting in Launceston.

Russell-Smith declared insolvency last week, two years after being bailed out of receivership.

The Communications Electrical Plumbing Union (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 this morning.

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."

Russell-Smith foreman Jamie Fenton Photo: Foreman Jamie Fenton wants authorities to provide answers on Russell-Smith's demise. (ABC News: Laura Beavis)

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

In a statement, Russell-Smith 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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