Redundant Lane Walker Rudkin staff may not even get holiday pay

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Fri, 15 May 2009 12:00a.m.

The harshness of recession was on full display as more than a 180 employees of clothing company Lane Walker Rudkin learned they'd lost their jobs in the last 24 hours, and they may not even get the holiday pay that's owing to them.

Under receivership law, redundancy and holiday pay must come from the liquidation of the company's assets.

Until stock and machinery is sold, workers won't see a cent of what they're owed.

"Some will be entitled to $20,000, $30,000 or more in redundancy pay, but under our receivership laws the cap is on $16,420," says Robert Reid from the National Distribution Union. "But we don't even know if they're going to get that."

In Christchurch a 102 people lost their jobs, while 19 workers at the company's Pahiatua factory were laid off yesterday.

The union has asked Westpac and the Government to carry the company's debt until its assets are sold.

But Westpac says it can't comment on the honouring of holiday or redundancy pay, and the Government says it won't be drawn on whether it's prepared to help.

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15 May 2009 11:52p.m.

Bob wrote:

Yet another example of a NZ company going under due to the top dollar being spent over seas. This company make sport apparel under licence for Canterbury Clothing yet our top rugby team wears uniforms manufactured overseas.