Fears workers will never receive entitlement from GFG's liquidated companies
Workers from two companies owned by GFG Alliance may not receive their full entitlements. (ABC News: Che Chorley)
In short:
Two companies owned by GFG alliance, the former operator of the Whyalla Steelworks, have been forced into liquidation.
There are fears that workers from one of those companies Ferretti International will be left out of pocket, particularly among the migrant workforce who are not eligible for the federally funded Fair Entitlement Guarantee.
What's next?
Migrant workers are calling for the government's help as they are not eligible for the federal scheme.
Two Whyalla-based companies owned by GFG alliance, the former operator of the Whyalla Steelworks, have been forced into liquidation.
According to the Australian Manufacturing Workers Union, unlike the steelworks, the Whyalla Ports and Ferretti International do not have tangible assets to sell to pay their respective debts, including to their workers.
Jun Samonte has spent 14 years working for the same business, though over the years it has had numerous name changes and owners, the latest of which is Ferretti International.
He now fears he will not receive the $53,000 he is owed in entitlements, despite already having waited a year for them.
Jun Samonte is owed $53,000 in entitlements now that Ferretti International is in liquidation. (ABC News: Arj Ganesan)
"I'm waiting for that to use for my retirement," he said.
"They [GFG Alliance] promised us … we are priority, that's what they've said. The employees are the priorities."
With hindsight, Mr Samonte says he should have left the company earlier.
"One of our mates, I think he's lucky … He left six months earlier and he got all his entitlements … I might [have] done the same if I just knew what [would] happen to Ferretti," he said.
Mr Samonte is also among the migrant workforce and therefore not eligible for the federally funded Fair Entitlement Guarantee (FEG).
Workers let down
AMWU organiser Steve McMillan said the liquidation process was unlikely to cover the companies' outstanding debts.
"Whatever money's left has to be divvied amongst the creditors ... and the employees being one of those," he said.
"But unfortunately, we don't think there's going to be enough money in the coffers to pay the entitlements of those workers."
AMWU's Steve McMillan says workers feel let down by GFG Alliance and chairman Sanjeev Gupta. (ABC News)
Ferretti International owes more than $2 million in entitlements to its 100-strong workforce between the Whyalla and Wingfield sites.
Whyalla Ports owes roughly $194 million to its various creditors.
Mr McMillan said workers felt let down.
"It's just another thing that's happened in Whyalla that has basically, you know, left a black mark," he said.
"I mean, people work for a company in good faith that their entitlements are secure ... regardless of what the business is doing.
"Some of the migrant workers may not see a cent [of what they're owed]."
When Whyalla Ports and Ferretti International were placed into administration last year creditors allowed GFG Alliance, the parent company, to maintain control under a Deed of Company Arrangement (DOCA).
Michael Brereton from administrator William Buck. (Supplied: William Buck)
Michael Brereton from administrator William Buck said a creditors' meeting was held earlier this month after "material breaches" were identified under the respective arrangements.
"In both matters, the deed proponent, under the GFG Alliance, had failed to make required cash contributions in accordance with its obligations under the DOCAs," he said.
Whyalla Ports owes at least $194 million to various creditors. (ABC News)
A spokesperson from the Department of Employment and Workplace Relations said the FEG scheme is a safety net for workers when an employer enters liquidation or bankruptcy.
To be eligible, workers must be an Australian citizen, permanent visa holder or special category visa holder at the time their employment ended.
'We work hard for that money'
Mr Samonte, who was working towards his permanent residency, says the rules are still "very unfair".
"That's what the rule says, that's what the law says. But we're very upset because we work hard for that money,"he said.
"Think of our situation, the visa holders."
He is calling on the government to make allowances to try and get "even a partial amount" of the money he is owed.
Though the scheme is a valuable safety net, those eligible are still likely to miss out on part of their entitlements.
For instance, superannuation is not covered under the scheme.
GFG Alliance has been contacted for comment.
