JOBS SHOCK: 260 workers told ‘you’re out’
SACKED Ostwald Bros workers were delivered a double blow yesterday when they were told no redundancy payouts were likely. Administrators in charge of the troubled civil construction company laid off 260 staff as part of a company review.
Another 140 staff remained stood down, pending negotiations that could result in some projects resuming.
It was a bit of a shock but you could see it was coming.
— Naish Kenny
ONE of the Ostwald Bros workers sacked by administrators of the troubled civil construction company said employees had not been promised redundancy payments.
Naish Kenny, who worked for Ostwald Bros on the Toowoomba Second Range Crossing, received a call yesterday morning that he was one of 260 workers across the state who had lost their jobs.
The Toowoomba resident and machine operator said sacked employees were not offered redundancy payments, but that might change in the future.
“They sent out an email saying they’d be notifying people who were laid off, (and) I was told I was no longer needed,” he said.
“(The worst part was) to be told they didn’t have any money to pay out any redundancies.
“At the moment, there are no payments but there might be down the track.
“It was a bit of a shock but you could see it was coming, just with what was happening.”
Mr Kenny said the uncertainty leading up to the revelation was the worst part of the ordeal.
“I’m not too bad, but for two days I didn’t know what was happening,” he said.
“At least I can move on and get another job.”
While Mr Kenny was officially sacked yesterday, he hadn’t worked on-site at the Toowoomba Second Range Crossing since August 15.
“We left the work site the week before last on a Tuesday – we were told that the company (Ostwald Bros) hadn’t been paid,” he said.
Along with the staff already sacked, PriceWaterhouseCoopers’ administrator Derrick Vickers said 140 workers remained stood down as he and fellow administrator Sam Marsden continued to investigate the struggling business.
A lifeline may be thrown to the 140 employees who have been asked to continue to stand down, pending the outcome of discussions with lead contractors on a number of sites that could see these projects return to operation.
Workers in Dalby learned the full news in a special meeting at the office about lunchtime.
“This is not a decision we have taken lightly, and we explored all options for continuing the entire group’s operations on a business-as-usual basis,” Mr Vickers said.
“Unfortunately the current position of the company is such that this was not possible.
“However, we are in discussions with contractors at several sites and are hopeful that up to 140 employees will be able to return to work early next week.”
Ostwald Bros’ financial woes sent shockwaves throughout the region.
CEO Brendan Ostwald pointed to ongoing contractual disputes with major projects as partially the reason for the board’s decision.
Creditors can learn more about the financial situation at a September 6 meeting. They should register their claim by calling (07)
3257 5111.