
Issue No 44		03 March 2000

News

Directors: Two Strikes And You’re Out

Company directors could face their own form of mandatory sentencing if rarely used provisions of the Corporations Law are enforced to protect workers from serial liquidators.

The NSW Labor Council has flagged it will investigate legal action against two of the directors involved in the collapse of South Coast abattoir Parrish Meats from going into business again.

Under sections 599 and 600 of the Corporations Law directors who have presided over two or more companies that have gone into external administration within a seven year period owing more than 50 cents in the dollar to creditors can be prevented from managing another corporation for a period of up to five years.

However the section has rarely been invoked, as it requires action by the Australian Securities and Investments Commission (ASIC).

Labor Council secretary Michael Costa says the two directors - Ken Parrish and Colin Lord - appeared to have been involved in other failed enterprises before the collapse of Parrish Meats in August last year left about 120 workers up to $1 million out of pocket.

According to a directorship search conducted at the ASIC, Parrish had been involved in the failure of two companies (Parrish Meats and South Coast Bulk Carcass Carriers Pty Ltd) and Lord four (Direct Acceptance Corporation, Direct Acceptance Investments, South Coast Bulk Carriers and Parrish Meats).

Illawarra Council of Trade Unions secretary Arthur Rorris says a deed of company agreement to partially repay the outstanding entitlements to the Yallah workers limits their ability to directly pursue the Parrish Meat directors to regain their full entitlements.

But Rorris says the union movement will pursue the directors under other sections of the Corporations Law, to ensure that they will not expose other workers to the same fate.

Costa says the case looms as an important test of the Corporations Law and the extent to which company directors should be held accountable for their actions.

"We seem relaxed about subjecting ordinary citizens to these types of sentencing regimes - it's time to see how the top end of town likes them," Costa says.

National Textile Workers Put Funds Back into the Fight

Meanwhile, victorious National Textile workers have vowed to maintain the fight for universal protection of worker entitlements.

Addressing Labor Council's weekly meetings, the workers said they would put nearly $40,000 raised by other unions for them during the campaign into a movement-wide fighting fund.

The workers last week finally signed off on a deal to ensure they would receive 100 per cent of all entitlements owed to them.

Retrenched worker Dave Evans thanked the movement on behalf of his former workmates for the organisational, moral and financial support during the campaign. "Our aim is now to build a platform for every worker to receive what is their's" Evans said.

At the meeting, Teachers Federation president Sue Simpson presented a cheque for $11,000 raised by teachers at statewide stopwork meetings last month. They joined other unions including the MUA, ETU, AMWU and CFMEU to make financial contributions.

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Issue 44 contents

Interview: The Big Fella
Opposition Leader Kim Beazley speaks about Labor’s evolving relationship with the trade union movement in the post-Accord era.

Unions: An Interactive Resource
The priority for unions in the 21st century is organising and growth. Greg Combet’s unions @work report identified the direction unions should be moving.

Media: Public Hearings
As the big media players look increasingly tarnished, the broadcasting minnows like FBi are seeking their share of the airwaves.

History: Labour History Under Siege
In good labour tradition, the history section of Workers Online begins the year with a call to arms.

Olympics: Games Greed Boosts Homeless Numbers
'Homeless in Sydney' is shaping up to be the theme of the Olympics with many property owners evicting tenants and pushing up rents.

Women: No Time To Be Casual
International Women’s Day is a day to take action. As a shop steward or union delegate why not use IWD as an opportunity to encourage the women in your workplace to join the union?

International: Serbian And Kosovo Unions Meet
The Italian metalworkers has hosted meetings on how to build a different future for the workers in the Balkans.

Labour Review: What's New
Read the latest issue of Labour Review our resource for students, activists and officials.

Review: Rock and a Hard Place
A hippie festival? Alternative? No way...the music festival know as the Big Day Out (BDO) is fast becoming a mainstream youth cultural event, a snapshot of the broader society that unions are struggling to engage.

» Directors: Two Strikes And You’re Out

» Track Workers Face Spot Drug Tests

» Big Bird Fights Ansett Jobs Flight

» LaborNet A Step Forward in Democracy

» From the Lorry to the Creche, We're Watching

» Penal Provisions Against Teachers Condemned

» Auditor General Moves on TAFE

» Yahoo! Under Fire for Union Censorship

» Unrest Bubbles Over Coke Sackings

» Jennie To Sign Off Online

» Basic Goods Sought for East Timorese

» Western Sydney Added to Campus Tour

» Pay Equity Update

» STOP PRESS: Mac Attack Tuesday