29 May 2009

Union makes 'payout' to members at LWR

2:54 pm on 29 May 2009

Union members at Lane Walker Rudkin who lost their jobs earlier this month will receive a "payout" on Friday from public donations and union trust funds.

Some 200 employees have so far received only their final week's wages after the clothing manufacturer was placed in receivership on 28 April.

The National Distribution Union says it is making an initial payment to its 77 members from trust funds and donations.

The money includes funds raised at cake stalls outside Westpac, the bank that placed the company in receivership.

The stalls were a protest against the bank continuing to lend to the troubled company.

Westpac says it acted immediately once it became aware of the company's dire situation.

Whether the employees will receive redundancy and holiday pay remains in doubt.

A spokesperson for the receivers, BDO Spicers, says it is likely some payment will be made but it is not sure how much.

A support centre is also being set up for the workers to offer re-training and help to find new jobs.

The Government is paying for the union's former site delegate to run the centre for three months.