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Clothing workers case deserves thorough investigation



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MINISTER FOR INDUSTRIAL RELATIONS

15 October 1992 1992/169

CLOTHING WORKERS CASE DESERVES THOROUGH INVESTIGATION

I am very concerned to hear details of the shabby treatment of workers employed by Zallag Holdings Ltd and Caldaden Pty Ltd.

These New South Wales clothing manufacturers, both owned by Mr F Gazal, retrenched workers in May 1990 and July 1992 and went into liquidation.

The TCF Union alleges that the employees are still owed entitlements of the order of $530 000 by Caldaden Pty Ltd and $220 000 by Zallag Holdings Ltd.

Today, the ex-employees spoke to members of the Labor Party Caucus of their justified distress at being victims of a corporation which seemed to consistently arrange and rearrange its affairs so as to avoid meeting its legal obligations to

its employees. -

I consider that the failure of the companies to pay the employees all that they are owed is disgraceful.

In my view this matter should be urgently investigated by the Australian Securities Commission.

SENATOR PETER CC

Contact Officer: Susan Gray (06) 2777320