Alliance says LWR workers should get a better deal

Alliance Party media release FOR IMMEDIATE RELEASE Monday 18 May 2009

Alliance Party co-leader Kay Murray says it is unacceptable that receivers have not guaranteed wages owed to laid off workers at the Lane Walker Rudkin factories in Christchurch, Greytown and Pahiatua.

The workers are also being told they will probably receive no holiday or redundancy pay.

Ms Murray says Lane Walker Rudkin is part of the Pod Group which has two other operations, Mollers Homewares and Michele Ann, another design and clothing manufacturer.

According to the receivers both of these companies are “profitable and cash positive”.

But rather than use some of the profits from these two companies to pay the redundant workers what they are owed, the receivers have sought to ring fence these operations.

"While no one would want to see these companies placed in jeopardy and further redundancies, there needs to be some accountability to ensure that the laid off Lane Walker Rudkin workers are not left with less than nothing while it is business as usual for the owners/shareholders of the Pod group."

Ms Murray says it is time for the Government to ensure that all New Zealanders get the “fair go” they are so fond of talking about.

"There needs to be the clear expectation that it is unacceptable for otherwise profitable organizations to isolate one part of their operation to absolve themselves from responsibilities to workers and other creditors."

She says Westpac bank should not be colluding by restricting its financial assistance to Mollers and Michele Ann.

"Westpac needs to take some responsibility for this mess and if all else fails use some it its own ample profits to make sure workers are not ripped off."

ENDS

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