Workers worry -- administration `most likely' for Empire Rubber

Huon Corporation managing director John Schulz told The Advertiser late yesterday that voluntary administration was the "most likely" of all options being considered for his embattled Bendigo firm.

His comments followed a spirited union meeting inside Empire Rubber grounds, attended by about half the company's 370 employees yesterday afternoon.

Maintenance fitter Jason Gilhooley, a 28-year-old father of two, said although nobody knew the company's plans, workers were worried job losses were on the cards.

"It makes me feel pretty nervous about security for me and my family in Bendigo.

"It (more job losses at the plant) would be devastating for the whole community, not just the people who work here."

Fellow factory worker Shane Hogan said all workers were feeling the same.

"I'd have to go on the dole (if I got retrenched); I'm 52, I've got no chance of employment in Bendigo," he said.

"Most of the people here are in the same boat; they've all got mortgages, they're in the same age group or a little bit younger and they'd be devastated."

Although he conceded changes were needed at the company, Mr Schulz said there would be no decision about whether job losses were necessary for another two or three weeks.

"There will be no change to business for the immediate short-term," he said.

Mr Schulz said if redundancies became necessary, he wanted to ensure workers got their full entitlements.

National Union of Workers state secretary Dave Oliver urged Mr Schulz to honour this pledge.

"I hope that John Schulz can give a personal assurance that all the employees will get their entitlements," he said.

"He might want to put his money where his mouth is and make that public, and maybe put up some of his own personal assets to make sure that his employees won't miss out."

An ongoing legal battle between Huon Corporation and Nylex Ltd - the firm it bought Empire Rubber from little more than six months ago - will be pivotal if Mr Schulz or an administrator decides job cuts and savings are required at Bendigo.

Mr Hogan said workers did not know who was at fault for Empire Rubber's fall from grace.

"When John Schulz bought the place, we were quite happy about it.

"We thought it was Father Christmas coming in here, but it's turned out pretty nasty at the moment.

"There are quiet a few people out there who are owed a bit of money (in entitlements). To get nothing out of that or to lose it to this place would be devastating."

Union officials said if an administrator was called in, that person would have to assess the potential of Huon's claims against Nylex.

Mr Oliver said the unions would also ensuring workers were not short-changed.

However, he said the major issue threatening jobs was the attitude of Australia's car manufacturers, who were now sending many of their component contracts abroad.

"In the last 12 months alone in Victoria we've seen no less than 2000 direct jobs leave the sector.

"How many more jobs have to disappear before the government is going to get up and doing something about it?

"The car companies are recipients of billions of dollars of taxpayer-funded packages, and we say those packages should require the car companies to give regard to local manufacturers and providing local jobs."