Workers at the Melbourne based Print company Australian Envelopes have been stunned by the news that 300 employees will be made redundant. This news has followed the announcement that the company was going into administration.
A spokesperson for the company has confirmed that 300 staff will be made redundant while 20-30 employees will continue working as the receivership proceedings carry on.
The Australian Manufacturers Workers Union has stated that the bank is owed more money than what the assets of the company are valued at. This means that most creditors and staff members will not be paid what they are owed. Employees will have to wait for the receivership proceedings in order to see whether they will receive any payments or not.
The AMWU has said that staff of the company were devastated as many of them have worked at Australian Envelopes for a number of years. Most staff members were unaware of the financial situation the company was in. As many of the staff believed the company was doing well, the news of receivership was unexpected.
Both the union and employees feel that the company should either go into liquidation or be sold. In the case of liquidation the employees will be able to claim their entitlements through the Australian government. However if the company is sold employees would have the option of taking a redundancy package or signing an employment contract with the new owner. Both employees and the union feel this situation arose due to poor management of the company.Get a Free Quote for Print Get a Free Quote for Envelopes
