Ansett creditors meeting & AIRC

Date: 19 September 2001

More than 2,500 Ansett employees packed into Crown Casino's Palladium Room yesterday to hear from the Ansett Administrator at the first Creditors' Meeting. The huge turnout by Ansett employees leaving no doubt as to the determination and commitment of workers to see the airline fly again. Congratulations to all members who attended.

The meeting was the largest and most unique in Australian corporate history. Unions - with flags flying - did a lap of honour of the Palladium Room to a standing ovation prior to the commencement of proceedings. The Administrator - shocked by the lack of locally based management at Ansett - praised the dedication and commitment of Ansett's staff, which was - he said - the only thing keeping the airline in the skies in recent times.

Yesterday's events show that Air New Zealand and the government's attempts to duck responsibility cannot continue much longer.

The major outcome of the meeting is that unions are now well represented on the creditors' committeee. This is a vindication of the decision by unions to seek a change to the administrator.

Industrial Relations Commission Case

Yesterday in the Industrial Relations Commission, mountains of material was presented showing the integration of Air NZ and Ansett opeerations, throwing doubt onto Air New Zealand's claim that they are seperate companies. The crucial fact being the "letter of comfort" from Air NZ to Ansett on 8 August stating that they would back Ansett's cash needs up to $400 million Australian. This letter of comfort was unilaterally withdrawn by Air NZ moments before the administrator was appointed.

The new administrator will be investigating the circumstances surrounding this.

The AIRC case itself has been adjourned until this morning when further union witness statements will be presented. This will complete the union case. Air New Zealand are due to present their case to the Commission on Thursday.

Air New Zealand are also appealing the initial "dispute finding" made by the Commission at the commencement by unions of these proceedings. This is a technical strategy to attempt to cut short the union's proceedings. The appeal will be heard by the Commission on Thursday at 9am.

In Parliament yesterday figures were presented which show that the Howard Government's entitlements protection scheme will cover only the bare minimum of entitlements owed to Ansett employees.

Any Ansett employee with more than 4 years of service stands to lose out under the scheme. The scheme caps redundancy payments at a maximum of 8 weeks. Ansett employees working under the union negotiated enterprise bargaining agrements (which are their legal entitlements) are due up to a maximum of 104 week pay for the longest serving.

At 9am this morning unions were due to meet with Victorian Premier Steve Bracks and Tresurer John Brumby to discuss an Ansett rescue plan.

Wednesday Industrial Relations Commission Update

Further evidence was presented to the Australian Industrial Relations Commission this morning by Ansett Treasury staff, revealing that money was "swept" on a daily basis from Ansett Australia bank accounts across the Tasman to Auckland. This latest evidence providing further backing to union assertions that Air New Zealand has had total control over the joint operations of Ansett - Air New Zealand.

It is time that Air New Zealand came to the bargaining table and entered into meaningful discussions with unions as to how the Ansett mess is to be cleaned up. It is time to stop hiding behind the corporate veil and face up to their responsibilities.

For further information

Contact:	Jason Gibson
Union:	Australian Services Union - Vic MEU Private Sector Branch
Phone:	03 9342 3418
Contact Mobile:	0418 100 319
Fax:	03 9342 3499
Email:	jgibson@meupsvic.asu.asn.au
WWW:	http://www.keepansettflying.org

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