A union claims that Oceania Glass’s administrators “blindsided” workers with the announced closure of the company’s manufacturing plant in Dandenong South.
On 27 February, administrators at Grant Thornton Australia stated 151 jobs would be lost – including 56 employees laid off immediately.
It has led to outrage from industry groups such as South East Melbourne Manufacturers Alliance (SEMMA) – which accused Prime Minister Anthony Albanese of having a “glass jaw” in failing to rescue Australia’s only architectural glass manufacturer.
Australian Workers Union (AWU) state secretary Ronnie Hayden said the union was “shocked and appalled by this ambush”.
The closure of the factory leaves employees waiting months for the company’s liquidation before receiving their redundancy payments and entitlements, he says.
According to AWU, administrators applied to the Federal Court to extend the administration process to August, meaning workers couldn’t apply for the federal government’s Fair Entitlements Guarantee (FEG) for six months.
“It is utterly outrageous to think you can lay off 40-plus hardworking Australians with no financial support or entitlements and expect it to go unnoticed.
“These are people with families, mortgages, and bills to pay.
“Our members are facing the prospect of leaving with zero dollars in their pockets and waiting half a year for their entitlements. This is completely unacceptable.”
Hayden called on the Federal Government to fast-track the FEG applications.
“The Fair Entitlements Guarantee is designed precisely for situations like this – to protect workers when businesses fail.
“The AWU is demanding urgent action to ensure workers receive their full entitlements without delay and warns that this shocking situation may only be the beginning.”
He said the union was exploring “all legal avenues” to hold administrators to account.
“We are deeply concerned that there is more to come. This appears to be a calculated strategy to sideline workers’ interests during the administration process.”
SEMMA chief executive Honi Walker questioned why the Federal Government recently offered a $2.4 billion bail-out of Whyalla steelworks but there was no lifeline for Oceania Glass.
“Why isn’t Albo playing the Man of Steel this time? Does he have a glass jaw?
“If Victoria is to be the battle ground for this federal election – Albo – come down to Dandenong and save Dandenong manufacturers – it might just save your job.”
She called on the Government to immediately bring forward the Anti-Dumping Commission’s findings and apply tariffs to cheap imported steel and glass.
“Do the right thing for Australian Manufacturers and our workers – back a Future Made in Australia – back your own policy!”
The Australian Glass and Window Association (AGWA) warned of serious impacts for Australia’s building sector and national housing supply targets.
“Our members are constantly being asked to compete against cheap imported products that increasingly skirt Australian safety and quality standards,” AGWA chief executive Clinton Skeoch said.
“Every manufacturer we lose weakens our sovereign capability to build locally.
“If more Australian glass and window businesses are forced to close their doors it will rob our construction sector of decades of expertise and crucial manufacturing capacity during a chronic national housing shortage.”
AGWA called for stricter enforcement of quality standards for imports and stronger protections for local manufacturers.
In a statement on 27 February, voluntary administrators stated they were unable to secure a buyer for Oceania Glass as a whole.
“Regretfully glass manufacturing at the company’s Dandenong factory will cease shortly.
“As a result, the administrators have had to make the difficult decision to make 56 employees at the Dandenong manufacturing facility redundant effective immediately with the potential for a further 95 redundancies over the coming weeks as the company’s float line and production facility is wound down.”
Meanwhile, the administrators were exploring the sale of the company’s national distribution business with “several interested parties through a due diligence process”.
The distribution facility co-located in Dandenong will “continue to operate as usual over the forthcoming weeks”.
“We wish to extend our thanks to the employees of Oceania Glass for their patience and co-operation during this difficult time as we begin the process of ceasing manufacturing operations at the Dandenong factory,” joint administrator Lisa Gibb said.
“We acknowledge this latest outcome is stressful for employees and their families and are providing support services to those affected.”
According to its website, Oceania Glass sold its first glass in 1856 and is Australia’s only maker of architectural glass.
Prior to its collapse, Oceania Glass submitted to the Anti-Dumping Commission that the Australian industry had suffered “material injury” as a result of clear laminate glass imported from Thailand and China at dumped and subsidised prices.
Star News is awaiting comment from Federal Industry Minister Ed Husic.
