GFG Alliance workers face unpaid entitlements after company liquidations

Workers at two Whyalla-based companies, Whyalla Ports and Ferretti International, owned by GFG Alliance, face an uncertain future as the businesses have been forced into liquidation. Unlike the former Whyalla Steelworks, these companies reportedly lack tangible assets to cover their debts, including substantial amounts owed to their employees.

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I'm waiting for that to use for my retirement.

Jun Samonte, who has worked for the business for 14 years under various ownerships, fears he will not receive the $53,000 in entitlements he is owed. He has already waited a year for the payment, which he intended to use for retirement. Samonte expressed regret for not leaving the company earlier, noting a colleague who left six months prior and received all his entitlements.

Steve McMillan, an organizer for the Australian Manufacturing Workers Union (AMWU), stated that the liquidation process is unlikely to yield enough funds to pay all outstanding worker entitlements. He explained that any remaining money would be divided among creditors, with employees being one group. Ferretti International owes over $2 million in entitlements to its approximately 100 employees across its Whyalla and Wingfield sites, while Whyalla Ports owes around $194 million to its creditors.

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They [GFG Alliance] promised us … we are priority, that's what they've said. The employees are the priorities.

McMillan added that workers feel let down by GFG Alliance and its chairman, Sanjeev Gupta, describing the situation as a "black mark" on Whyalla. He emphasized that employees work in good faith, expecting their entitlements to be secure regardless of a company's financial performance. Compounding the issue, some migrant workers are not eligible for the federally funded Fair Entitlement Guarantee (FEG).

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Whatever money's left has to be divvied amongst the creditors ... and the employees being one of those.

Administrators from William Buck identified "material breaches" in the Deed of Company Arrangement (DOCA) for both companies, as the GFG Alliance failed to make required cash contributions. Michael Brereton of William Buck confirmed that a creditors' meeting was held earlier this month following these breaches. The situation leaves many workers, particularly those from migrant backgrounds, at risk of not receiving any of the money owed to them.

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But unfortunately, we don't think there's going to be enough money in the coffers to pay the entitlements of those workers.