FED: Union walks out of creditor talks

AAP General News (Australia)
02-10-2000
FED: Union walks out of creditor talks

The union representing sacked Hunter Valley textile workers has walked out of a creditors
meeting claiming talks are going nowhere.

Textiles, Clothing and Footwear Union assistant state secretary JOHN OWEN says one
of the two main creditors of the defunct National Textiles company has tried to renege
on a deal reached yesterday, to repay workers' entitlements.

Mr OWEN says a committee of creditors meeting in Newcastle voted yesterday to push
for the sale of machinery and National Textiles' Rutherford plant to repay the 342 workers
the $7 million owed in entitlements.

He says during that meeting, a representative of Oldtex was present and agreed to the
resolution that the adminstrator push for the sale and repay workers their entitlements
within one month.

But he says during today's meeting Oldtex tried to drag out that agreement for three
or four months.

He says the main creditor, Scottish Pacific Fund, refused to join today's talks and
has agreed to meet only with union representatives tomorrow.

The federal government earlier this week agreed to throw a $4 million rescue package
to the sacked workers, who are owed a total of $11 million.

AAP nd/tsm/as/jn

KEYWORD: SACKED CREDITORS (SYDNEY)

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