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Lobbyists seek more protection for employees of collapsed companies

The Catholic lobby group PolMin has stressed the Government's responsibility to step in when workers lose their entitlements following the collapse of the company employing them.

PolMin was commenting on the report of the Australian National Audit Office's into the current General Employee Entitlements Scheme (GEERS) released on Tuesday.

The report asserts that the current inadequate policy needs immediate action by the Federal Parliament to fix its deficiencies.

"Federal Parliament has an obligation to protect innocent employees when managers of the companies that employ them fail in their duty to manage the company properly causing the company to collapse," said PolMin Coordinator James McGillicuddy. "These employees loyally front up to work in good faith that their entitlements are secure only to find that when the company goes bust, their entitlements have been squandered by desperate managers.

Mr McGillicuddy described the Federal Government's GEERS scheme as unjust.

"Catholic social teaching going back to 1891 and restated constantly since, stresses that employees are entitled to just remuneration," he said. "United Nations International Labour Organisation's (ILO) Equal Remuneration Convention of 1951 defines remuneration as including wages or salaries and all other direct or indirect payments or payments in kind to the employee."

"PolMin, on behalf of the thousands and thousands of innocent employees disadvantaged by the loss of their entitlements calls on Federal Parliament to use the Report as the trigger to review and rectify the deficiencies of the current policy."


Australian National Audit Office | Employee Entitlements Support Schemes

12 Dec 2002