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PSA wants redundancy pay for Terralink workers

Public Service Association
Media release 19 January

PSA wants redundancy pay for Terralink workers

The announcement today that the 67 workers previously employed by Terralink will receive the wages and holiday pay owed to them is welcomed by the PSA. But it is concerned the 67 workers and Terralink’s remaining staff face losing the redundancy pay, months notice and long service leave entitlements set out in their current contract.
‘Under the present law employees have only a preferential claim for holidays and salary. Other entitlements such as redundancy, notice and long service leave are unsecured. That means there is no guarantee these workers will be paid their full entitlement even though it may be in their contract,’ said National secretary Richard Wagstaff.
‘Terralink workers are in a specialist field. Many of them have given years of loyal public service and deserve compensation for the loss of a career. They face an uncertain and bleak future with only a limited chance of finding alternative employment. We believe the government has a moral obligation as a shareholder to honour the contract,’ he said.
‘It is time the government acted to amend legislation covering receivership to ensure workers’ entitlements, including redundancy payments, are given priority over other claimants. It is ridiculous that large and wealthy organisations like banks are paid out ahead of workers who have given years of loyal service,’ Wagstaff said.

For more comment or information please call
the PSA national secretary Richard Wagstaff on 025 2778131

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