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Issue No. 192 | 22 August 2003 |
Flexing the Muscles
Interview: The New Deal Unions: In the Line of Hire Culture: Too Cool for the Collective? International: The Domino Effect Industrial: A Spanner in the Works National Focus: Gathering of the Tribes History: The Welcome Nazi Tourist Bad Boss: Domm, Domm Turn Around Poetry: Just Move On. Review: Reality Bites
Socialists Give Banks a Kicking Workers Bag Leave Entitlements Australia in Terrorists� Sights Rheem Taps into Lock Out Pattern
The Soapbox Education The Locker Room Postcard
A Harsh Lesson Axe The Max India On A Dollar A Day
Labor Council of NSW |
News Bosses Keep the Merc
Barton MP, Robert McClelland, told the House of a complex web of asset protection schemes put in place by Sydney businessmen Paul, Craig and Jason Caughlan before they claimed their companies could not pay $9 million owed to 300 employees. Included in that figure was $800,000 in superannuation which they had sat on for at least a year. "In the months before the administration, Paul Caughlan and his sons, Craig and Jason, transferred their employees to subsidiaries that had no assets," McClelland said. "In the weeks before the administration, Paul Caughlan and his sons presented a financial report which said the subsidiaries had promised not to call on the holding company should they themselves collapse. "In the hours before Metro Group collapsed, Paul, Craig and Jason Caughlan spirited their luxury cars away from the family's million-dollar waterside mansion at Burraneer Bay." With that scheme in place, he revealed, they sat down and negotiated an enterprise agreement with the AMWU, without mentioning imminent administration. In an aggressive public campaign that union has been demanding significant changes to corporate governance so directors of failed companies who act improperly are made responsible for their losses, and prevented from operating other businesses unless they can prove they were not culpable. Workers Online understands the majority of workers who lost employment at Metro Shelf were Vietnamese Australians. The company had a history of industrial disputes, with the CFMEU, AWU and the AMWU. "Australians are entitled to ask why, after nearly eight years of John Howard's government, so many hard-working battlers can go to work one morning to find that, without warning, they have lost everything - their income, accrued entitlements, superannuation even payroll deductions to health funds and the Child Support Agency," McClelland said. "Why is it that these honest Australians worry about how to pay the mortgage, support the family and put the kids through school while those they trusted to run the company appear to have amassed a fortune and placed it beyond the reach of the law?" The AMWU is investigating claims that another company associated with the Coughlans is importing low-cost supermarket equipment from China.
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