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Union shocked at Postie Announcement

Union shocked at Postie Announcement

The announcement of Postie Plus Group Limited (Administrators appointed) late Wednesday that it is closing 12 stores and making 64 staff redundant has been greeted with shock by FIRST Union, which represents Postie Plus workers.

“What has happened is highly irregular,” said Robert Reid, General Secretary of FIRST Union.

“Neither employees or the union were advised that there was a review on the future of stores before Postie went under Administration. No indication was given at last Thursday’s creditors meeting that so many stores would be closed and redundancies made. In fact at the creditors meeting the Administrator gave the opposite impression, that it would be business as usual for the next few weeks.

“This action raises the question of whether the Voluntary Administration that the company is under is simply a ruse to implement pre-determined restructuring under the protection of Administration.

“Under the Companies Act Administration is there to protect the interests of creditors. In this case it seems to be used for the opposite purpose,” Robert Reid said.

“While staff recognise that store closures and redundancies may happen at some stage, the way this has been handled is unacceptable.

FIRST Union is on the creditors committee which meets on Friday and will be making its views know then. It will also be seeking legal advice.

- Ends.

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