Federal Court win - Union secures entitlements for Harwood Resources Mill workers
The Union has won a Federal Court victory on behalf of mill workers in Tumut, which will see Harwood Resources liquidated in order to secure the entitlements of the mill's workforce. The court decision will also trigger GEERS payments worth a quarter of a million dollars.
The mill saw bitter disputation around a year ago when the workforce – some with 30 years experience with the business – were sacked without entitlements. A union blockade and occupation of the site ensued before agreement was reached to put the company into administration.
The Tumut sawmill was the last remaining hardwood mill in the South West Slopes of NSW.
CFMEU Forestry and Furnishing Products Division NSW State Secretary Craig Smith said the court victory was possibly the first time a union had successfully liquidated a company in order to secure entitlements.
“This victory is worth a half a million dollars to our members affected and sets a new benchmark for workers in this situation. It’s been a frustrating time following the appointment of a receiver 12 months ago. It became clear that the Receiver was not going to be able to deliver any funds to our members from the sale of assets, so we have taken this step.”
“We anticipate the Liquidator will deliver for our members and will also be able to sell the mill and its 20 year wood supply agreement as a going concern.”
“The original actions of the company a year ago was breathtaking, our members lost their accrued entitlements including several years superannuation that had not been passed on by the company. Even union dues deducted from the payroll had not been passed on to the union.”
“To go from that situation to where we are today is a pretty good advertisement for trade unionism.”
