CTU Seeks Legal Backup For Redundancies
“Workers who negotiate redundancy agreements should be able to be confident those agreements will protect them when a business becomes insolvent and they lose their jobs,” Council of Trade Unions present Ross Wilson said this morning.
“Unlike other creditors workers are completely reliant on that employer as their sole source of income.”
Ross Wilson presented the CTU submission, fully supporting the Status of Redundancy Payment Bill, to the Select Committee this morning.
“Many workers who have negotiated redundancy agreements are angry when they see it is worth nothing in an insolvency situation,” He said.
Ross Wilson said the CTU was calling for wages, holiday pay and redundancy payments to be paid out first when a business becomes insolvent.
He said that if the Select Committee felt that it should cap the worker’s entitlement then the present cap of $6,000 should be increased to $15,000.
“The cap has not been increased for
15 years,” he