Fed; Ansett employees hopes of Xmas payment wane

AAP General News (Australia)
12-13-2001
Fed; Ansett employees hopes of Xmas payment wane

By Jane Williams, Industrial Correspondent

MELBOURNE, Dec 13 AAP - Ansett employees' hopes of receiving entitlement payments before
Christmas faded today after the Federal Court delayed certifying a funding deal until
next week.

The deal, agreed to by the Commonwealth, Ansett administrators and unions, presented
Federal Court judge, Justice Alan Goldberg, with the question of whether he had the jurisdiction
to ratify a deal which could be overruled by Ansett creditors.

Employees anxious to receive at least part payment of accrued entitlements by Christmas
said today they were becoming increasingly frustrated by the delay in accessing their
money.

Deirdre Lampard, an administrative support worker in Ansett's marketing department
for 23 years, said many staff were relying on the money for Christmas expenses and household
bills.

"The judge doesn't seem to understand, he doesn't see the human side," Ms Lampard said today.

"Everyone's agreed to the deal, the government, administrators, unions I don't see
what the problem is."

Ms Lampard, who has worked just two weeks since being stood down in September, said
she had already spent her Christmas Club savings and was looking forward to the extra
money.

"A lot of people are in a worse situation; with dependent children and mortgages they'll
be in dire straits over Christmas.

"It's complete and utter frustration, the whole process," she said.

The funding deal, placed before the court on Tuesday, reflects an agreement between
Ansett administrators and the federal government over the priority of repayments for the
government's $195 million loan scheme to meet the entitlements.

The administrators' solicitor, Leon Zwier, said Justice Goldberg had the power to pass
the application.

It was unlikely that creditors would attempt to give new priority to the government's
standing at next year's creditors' meeting as the loan was considered an administrators'
expense under the Corporation Act of 2001 and should be repaid before employees and other
creditors, he said.

As part of the deal, the government has agreed to subordinate its position and "stand
in the shoes of employees" as primary creditors when assets were being distributed.

If the court refused to ratify the $195 million deal, redundancies would be paid through
other sources and could take weeks.

Justice Goldberg said reasons for his decision would be available on Monday at the earliest.

Administrator Mark Korda said 40 people were "working around the clock" to ensure redundant
employees received entitlement payments as quickly as possible.

AAP jmw/clr/hu/de

KEYWORD: ANSETT

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