Dozens of workers made redundant at Bedford are facing uncertainty this Christmas after learning that the thousands of dollars they are each owed in entitlements cannot be paid.
The broader consequences of the collapse of the disability employment provider are becoming clearer, with 540 unsecured creditors and outstanding debts of about $18 million.
Terminated workers are owed about $11 million in entitlements.
Carolyn Arnold says she is owed $8,000 after having her job terminated. (ABC News: Carl Saville)
Carolyn Arnold is one of 29 staff members let go earlier this month. She worked in Bedford’s lotteries division and said she was owed up to $10,000 in redundancy and leave entitlements.
“This side of Christmas, it doesn’t matter when you get let go… but it hurts,” she said.
“For all the work that we did over the years, raising funds for people with disability, we were forgotten. We were pushed aside and just not treated well.”
Annette Raue worked in disability employment provider Bedford’s fundraising division. (ABC News: Simon Goodes)
After working at Bedford for 11 years, Annette Raue is owed even more. She was also part of the lotteries team and estimated was due $28,000 in entitlements.
“They did the wrong thing,” she said.
The termination has taken a huge toll on Ms Raue. The stroke survivor looks after her grandchildren and with a mortgage to pay, she has no option but to find another job as soon as possible.
“It’s the house, the payments, the grandchildren, I suppose living. I’m supposed to go away for Christmas. I didn’t get a lot of money for what I was doing, that didn’t worry me, I was there for my job, it was my passion,” she said.
Peter Raue says the recent events have taken a toll on his wife. (ABC News: Simon Goodes)
Her husband, Peter, said it had been a stressful time for his wife.
“For someone who’s over 50 and now unemployed all of a sudden, it’s a bit hard to get back into the workforce,” he said.
In a statement, administrator McGrath Nicol said the ability to pay the workers’ entitlements depended on how much money could be recovered, including from asset sales. But if Bedford was liquidated, there was a federal government safety net.
“If their employing entity is placed into liquidation at the second meeting of creditors, terminated employees who are still owed entitlements will have access to the Commonwealth Government Fair Entitlements Guarantee (FEG) scheme,” the statement read.
McGrath Nicol has just sold Cultivate Food and Beverage, an entity under the Bedford Group social enterprise structure. A further 52 workers have been made redundant there.
Terminated the same day as Bedford’s future secured
Ms Arnold has gone through a rollercoaster of emotions.
On the morning of November 17, her boss excitedly delivered the news that Bedford would be sold, only for her to be told soon after that she had no future at the disability employment provider.
“I thought we were in a good spot, and then to be told a couple of hours later that I had lost my job and I could go in the next day to clean up my desk,” she said.
“It just wasn’t a really nice phone call to receive, and there was no thank you, like, thanks for your work.”
The government has contributed over $21million to help keep Bedford afloat. (ABC News: Carl Saville)
NDIS provider The Disability Trust has been named as the preferred buyer of Bedford. More than 1,000 supported workers will retain their jobs.
The state government is contributing $21 million to support the transition.
Dave Kirner from the CFMEU’s manufacturing division said some of that money should urgently be used to pay terminated employees.
“Now, if the administrator and the government say, look, pay that money, then people are in a position to transition through the Christmas period, get over the Christmas hump and look for employment in the New Year,” he said.
But government minister Zoe Bettison said the administration process had to run its course.
SA government minister Zoe Bettison says the administration process has to run its course. (ABC News: Justin Hewitson)
“Look, I want to express my empathy with them [the workers], my sympathy, but I think the key process here is the administrators are working through these difficult situations,” she said.
The second creditors’ meeting will be held no later than December 22.
Whatever happens, it could be some time before Ms Arnold sees any money.
“Christmas time is most probably the worst time of the year to not have a job,” she said.
“We’ve got every right to receive our money for sure.”