The Guardian 27 February, 2008
Call for workers’ entitlement protection
The National Union of Workers (NUW) NSW Branch is calling upon the Federal Government to introduce compulsory entitlement protection insurance as a mandatory inclusion in all workplace agreements.
The union’s State Secretary Derrick Belan said that there must be a substantial change to federal legislation to protect workers’ entitlements in all industries.
This follows the recent financial collapse of National Parts, where 300 people lost their jobs. Mr Belan said that current protection for workers’ entitlements, the General Employee Entitlements and Redundancy Scheme (GEERS) "falls far short" on adequately protecting all owed wages, superannuation contributions and other entitlements for workers.
GEERS caps redundancy payouts at 16 weeks and does not cover employer superannuation contributions.
"The current system is just not good enough", he said. "Workers’ full entitlements are not guaranteed. Having compulsory entitlement protection insurance would be financially viable and would ensure that should the worst occur to the employer, at least workers’ entitlements would safeguarded.
"Compulsory entitlement protection insurance could easily be made a tax deductible business expense for employers. There could be any number of ways it could be introduced, but the fact remains that it is needed, just ask any former National Parts worker", Mr Belan said.
The NUW believes that the government should recognise its moral responsibility to adequately protect workers’ entitlements by introducing a compulsory inclusion in every workplace agreement.
"WorkChoices is about to be thrown on the scrap-heap of Australian history, however we should go all the way in protecting workers and their families. Insuring that their entitlements are protected is a logical and practical step in the right direction.
"It is also the right thing to do," Mr Belan concluded.