OSTWALD Bros employees sacked by the administrator in charge of the struggling company won’t even be promised their final pay cheque.
The fallout continues after the administrator appointed to the Dalby-based civil construction business shed 260 workers on Wednesday as part of a thorough review into its financial troubles.
PriceWaterhouseCoopers partner Derrick Vickers said workers would not be guaranteed redundancy payouts or even outstanding pay at this stage, ahead of the first creditors’ meeting on September 6 in Toowoomba.
“Due to its current financial position, the company was not able to pay redundant employees their entitlements, including outstanding pay, this week,” he said.
“However, these entitlements could still be paid in full, depending on the outcome of future creditors’ meetings.”
Concerns over outstanding employee pay surfaced when a former worker contacted The Chronicle, saying he was promised his final pay on Monday, only for administrators to backflip on the commitment a few days later.
“Due to this unfortunate unfolding, I myself will now have no choice other than to declare bankruptcy,” the worker said.
“I have been living pay cheque to pay cheque for years, so I have no savings at all. In fact my bank account is minus $78.”
Mr Vickers said the administrators were working to resolve the situation as soon as possible.
“We understand the anxiety and uncertainty this creates and are working through the process as swiftly as possible,” he said.
“Employees have been made aware of the Federal Government’s Fair Entitlements Guarantee, which will cover outstanding employee entitlements except for superannuation should…
click here to read the rest of this story