News Release

 

 

UNIONS WIN DOUBLE REDUNDANCIES AND PROTECT SMALL BIZ WORKERS

 

11 May 2005

 

South Australian workers who lose their jobs will be entitled to more generous payouts, after SA Unions today won a test case on their behalf.

 

SA Unions Secretary, Janet Giles says the deal provides significant improvements for up to 300,000 workers on state awards.

 

"This is a fantastic, and much needed outcome for South Australian workers.  For too long, people have been vulnerable to severe financial hardship because they have lost their job.  People usually don't find another job instantly, and can have a tough time making ends meet in the interim," Ms Giles says.

 

"This case sets a raft of new minimum standards in the event of a worker being terminated or made redundant.  It is a vital safety net to tide them over between jobs".

 

Key points include -

 

• A sliding scale of payouts dependent on age and length of employment of up to 16 weeks, compared to a previous maximum of 8 weeks.  The majority of workers would receive 12 or more weeks pay.

• For workers aged over 45 the new entitlement is even higher at 16 weeks pay, in recognition of the increased difficulty faced by older workers securing new employment.

• Protecting the rights of employees in small business to access redundancy pay.

"South Australian workers now have provisions better than those achieved by the federal test case".

 

"We are particularly pleased to have protected the rights of people in small business, as this is a key battleground with the federal government, which wants to remove protections for these employees".

 

"This case demonstrates the importance of strong state laws and a robust state industrial system for South Australian workers.  There is a real risk however that their hard won rights could be lost if the Howard government gets its way and dismantles existing IR structures", Ms Giles says.

 

"SA Unions entered negotiations in this test case with a fierce determination to achieve a strong outcome for workers.  We succeeded, and the negotiated outcome has been accepted by the IRC.  Because it is a test case, rather than a one-off case for an individual worker, its acceptance by the IRC means it now applies across the board".

 

"It is good news for South Australian workers and for the state economy, as people will be better able to support themselves and their families while seeking other employment," Ms Giles says.