Laid off LWR workers still to see redundancy money

Laid off workers at textile manufacturer Lane Walker Rudkin (LWR) are yet to see any redundancy money, two weeks after losing their jobs, says the National Distribution Union (NDU).

The first payments to union members since then were not from the receivers, the Government or the company's bankers Westpac but from union trust funds and public donations, including proceeds of cake stall protests outside Westpac Banks over the last week, said NDU president Robert Reid.

Westpac Bank placed LWR in receivership last month after it incurred a substantial increase in bank debt.

One hundred and eighty six of the group's 470 staff were made redundant - 102 in Christchurch, 61 in Greytown, 19 in Pahiatua and four in Auckland.

Reid said he was today meeting 41 union members in Greytown and Pahiatua made redundant from LWR's Bouzaid and Ballaben company, which is now in liquidation.

"The workers were made redundant on May 14 and 15 and so far have only received payment for the week that they had been working," Reid says.

For those having to go onto the unemployment benefit, payments did not start until next week, he said.

"This is a horrendous week without any income at all for these people. That is why the union is making payments to workers from its own funds and public donations," he said.

Reid said most workers were owed holiday pay and redundancy pay around the cap of $16,420 but none of that was guaranteed.

"The receiver is telling us that even an interim payment on this debt will not be made for another two to three weeks."

Reid said Westpac was still refusing to meet the union.

"They seem to be more concerned at chasing the remainder of the $10 million that they mistakenly gave to an account holder than guaranteeing the holiday and redundancy payments to workers from the companies they have put into receivership."

Westpac and receiver Stephen Tubbs were not available for comment.

- NZPA