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Wage guarantee instrumental for employee protection

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ROGER PRICE MP Federal Meinberfo r Chifley PO Box 259 Mt Druitt NSW 2770

For Immediate Release


“The Australian Labor Party have introduced a Private Members Bill into Federal Parliament

with the objective o f establishing and administering a scheme to guarantee the payment of

wages and certain other liabilities owed to employees in the event of employer insolvency and

related purposes”, said Roger Price MP, Federal Member for Chifley.

“This move comes in the wake of the collapse of certain foreign companies operating in

Australia who have not paid their employees millions o f dollars in pay and other entitlements,

Because these companies have operated out o f regional centres the effects have been magnified

as the towns affected are hit by the resultant loss of spending and the hardship faced by their


“John Howard has allowed this to happen because under current Corporations Law employees

are paid after banks and other secured creditors if a company goes bust, thus employees and

their families are left to suffer whilst the big boys still get fed”.

“The principal means by which this bill aims to protect workers in the event o f their employer

going bust is to establish a scheme o f wage protection insurance, to require employers to insure

their workforces under the scheme, and to provide for the determination and enforcement o f

claims under the scheme”.

“All employers would be made to take out, and maintain, a policy o f wage protection insurance

with an approved insurer for the employer’s workforce”.

“Employees and their families must be protected if their employers become insolvent. We can

not sit back and watch families suffer due to the inadequacies o f the current legislation, This

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Bill is a positive move by Labor to rectify the current situation in favour o f employees”.

“The Howard government should be condemned for not committing themselves to

supporting the Bill. This is ju st a continuation o f their lacklustre response to the plight o f

affected workers and their families”, concluded Mr Price.

--E N D S .

Media C ontact: Michael Galderisi Phone : (02) 9625-4344

Dated : 25 March, 1998 Fax : (02) 9832-2641