AWU Supports Pasminco Restructure

Date: 21 May 2002

The Australian Workers' Union has lent its support to the decision by administrators of zinc and lead company Pasminco, to restructure the company by issuing shares in lieu of debt.

Bill Shorten, AWU National Secretary and a member on Pasminco's committee of creditors, said today that the union supported the decision because it was the best option to save over 3000 jobs at Pasminco's mines and smelters.

"Our priority is to support a restructure that preserves as many permanent jobs as possible. The union believes that this was the best way forward to deliver our members greater job security,'' he said.

The union represents about 1000 Pasminco employees across New South Wales, Tasmania, Queensland and South Australia. Mr Shorten said that while final details were yet to be settled, it was understood that workers' entitlements would be protected.

Under the deal, the interests of 39 financiers owed approximately $2.8 billion will be partially sold down through a public float, with the creditors retaining a residual shareholding in the company. The restructured company is expected to be listed on the Australian Stock Exchange before the end of the year.

"When base metal prices improve, the company will be well placed through this restructure to emerge out of administration to a brighter future - particularly with assets such as its smelters and North Queensland's Century as the jewel in the company's crown,'' Mr Shorten said.

For further information

Contact:	Andrea Carson
Union:	Australian Workers Union (National Office)
Phone:	039 3298733
Contact Mobile:	0407 041933
Email:	awu@iprimus.com.au
WWW:	www.awu.net.au

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