Mosgiel’s pay issue settled

Press, 15 July 1980, Page 1

Mosgiel’s pay issue settled

PA Dunedin Agreement was finally reached yesterday between the combined Mosgiel unions and the company’s receivers on redundancy payments for dismissed workers. The breakthrough came after a two-hour meeting between union representatives and the receivers, and followed a total breakdown in the negotiations on Friday. Sources close to the talks said there had been some hard talking during the week-end. No official comment or

confirmation could be obtained from union officials, but factory delegates informed the staff at meetings in each of the mills yesterday afternoon.

Union sources said the pay-out to workers made redundant would be on an average wage basis rather than a basic award wage basis. The receivers, when questioned on this point, would not be specific.

The combined unions had said from the start, apparently with no right in law. that they were entitled to industry agreement redundancy from the Mosgiel receivers, and to reinforce this claim, said that without it a total industrial ban would be placed on the company. This would have prevented any sale. The redundancy talks last Thursday and Friday broke down apparently because the debenture holders wanted a lower rate of pay-out than did the unions.

It is expected that the average pay-out will be $2OOO a worker, and that the total will be more than $2 million if no sale of Mosgiel as a going concern occurs.

The receivers said yesterday that notices of redundancy would be issued to “surplus” staff within a few days. However, a precise date could not be determined yet, and would depend on proposals for the company by Broad-

bank, and on discussions with Mosgiel management.

Union sources said seniority would be adhered to wherever possible, the principle of last on, first off being applied. Redundant employees will receive two weeks notice plus unused sick leave, together with two weeks pay for those with up to six months service, three weeks for those with between six and 12 months, and one week for each year of additional employment. The Acting Prime Minister (Mr Taiboys) said yesterday that the Government had not yet received precise details of what was asked of it in the latest bid to save Mosgiel. The Cabinet yesterday afternoon discussed a report from the Minister of Trade and Industry (Mr Adams-Schneider) on a proposal from a Broad-bank-led consortium to take over the company.

The consortium includes the debenture-holders, Development Finance Corporation, and Chase-NBA. and Associates.

Mr Taiboys said he believed the interested parties held further talks yesterday afternoon and “from those talks there may well emanate a proposal to the Government.”

Talks could continue with the Government today but “I do not know if finality will be reached in the commercial field,” Mr Taiboys said.