United Voice News
LHMU providing advice and support to Challenge Dairy workers
Members who have been laid off and those who remain working at Challenge Australia Dairy’s two sites in Capel and Boyanup are being offered help and advocacy in the process by their union LHMU.
Carolyn Smith, assistant secretary of the LHMU said: “This is a very difficult time for these workers. Twenty were made redundant last Wednesday and any of the others could be made redundant at any time.
“These workers are not getting any redundancy money currently and because of the situation it could take some time before they receive anything.
Delays
“When the receivers took over the company last Thursday, the bank accounts had a balance of $0. The banks get the money from the sale of the fixed assets like the land and the buildings. Workers will be the first in line for the sale of the floating assets like stock and monies owed to the company.
“The receivers believe that the sale of the floating assets will cover the approximately $1m which will be owed to all employees. But it will take some time for this money to come through.
“This is all under the assumption that Challenge Dairy will continue trading under receivership and will not be put into total liquidation.”
Currently only one of the two dairies which comprise the business remains operational – the one in Boyanup. The Capel Dairy has been placed into care and maintenance mode which means all staff will be made redundant except for sales staff, maintenance staff, and admin staff. But as soon as any role is no longer required the position will be made redundant.
The Boyanup dairy’s milk supply is on a day to day basis and could stop at any point meaning further redundancies.
'Assurance'
“In the best possible situation, workers who are made redundant will not expect to see any money from the company for at least a few weeks,” added Ms Smith.
“We got an assurance from the receivers that if workers are in major financial difficulties, they are willing to listen and see if they can speed up the process.
“We are encouraging our members to attend next Tuesday’s creditors’ meeting in Perth and we will act as their proxy if they are unable to attend. The meeting will provide an overview of the possible outcomes.
“In the meantime we will be providing our members with as much support as possible and trying to answer their questions at this exceptionally stressful time.”
