Union fears sackings in Mills buyout

– Shaun Inguanzo
THE competitor of a Dandenong factory under administration could sack all 50 workers if it buys the business to shut it down.
This is what a union fears will be a reality after the administrator of the Huon Corporation-owned Mills Elastomers this week confirmed a competitor of Huon was interested in buying the business.
Australian Manufacturing Workers’ Union assistant state secretary Steve Dargavel said the union was worried the 50 Mills Elastomers workers would lose their jobs if a competitor bought out Huon.
“There is one expression of interest who is competing in the same space as Huon who could purchase the business to close it down and ensure its competition is removed,” he said.
Mr Dargavel said the move was not out of character for the highly competitive automotive parts industry, which was constantly being pressured by car manufacturers seeking cheaper prices on parts.
Tony Sims of administrators Sims Partners confirmed a competitor was in the hunt for the business. But he said administrators working closely with unions would determine an appropriate buyer.
“Applicants will go through a screening process,” he said.
Mr Sims said Mills was already a stable business compared to Huon’s Frankston and Bendigo businesses. But he said the sale process would take up to eight weeks to complete, a time frame that will leave Mills workers eagerly awaiting news of their fate.
Mr Sims said Sims Partners had not sacked any Mills workers since Huon entered administration last Friday and did not intend to.