XN000022-1985-03-13 — Page 17

WEDNESDAY, MARCH 13, 1985

BILL TO PROTECT WORKERS' WAGES

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THE MAIN EFFECT OF THE PROTECTION OF WAGES ON INSOLVENCY BILL IS TO ENSURE THAT WORKERS OF COMPANIES THAT BECOME INSOLVENT RECEIVE WAGES DUE TO THEM AND RECEIVE THEM MUCH MORE QUICKLY THAN UNDER EXISTING PROCEDURES.

THIS WAS STATED BY THE COMMISSIONER FOR LABOUR, THE HON RON BRIDGE, IN MOVING THE SECOND READING OF THE BILL IN THE LEGISLATIVE COUNCIL TODAY.

+ IF THE BILL IS ENACTED IT IS INTENDED TO START MAKING PAYMENTS WITH EFFECT FROM APRIL 1, 1985 AND THAT PAYMENTS WILL NORMALLY BE MADE WITHIN ONE MONTH OF APPLICATION, HE ADDED.

MR BRIDGE POINTED OUT THAT AT PRESENT MANY WORKERS HAD TO WAIT SEVERAL MONTHS BEFORE RECEIVING WAGES OWED TO THEM BECAUSE OF THE COMPLICATED AND TIME-CONSUMING NATURE OF INSOLVENCY AND BANKRUPTCY PROCEEDINGS, AND MIGHT NEVER RECEIVE THE FULL WAGES IF THE IR EMPLOYER'S ASSETS WERE INSUFFICIENT TO COVER THEM.

THE BILL, HE SAID, PROVIDED FOR THE ESTABLISHMENT OF A PROTECTION OF WAGES ON INSOLVENCY FUND BOARD WITH POWER TO ADMINISTER THE FUND AND MAKE RECOMMENDATIONS AS TO THE RATE OF LEVY.

IT ALSO EMPOWERED THE COMMISSIONER FOR LABOUR TO INVESTIGATE WAGE CLAIMS AND MAKE PAYMENTS FROM THE FUND.

WHEREAS THE FUND IS FINANCED BY A LEVY OF $100 ON ALL BUSINESS REGISTRATION CERTIFICATES WHICH HAD BECOME PAYABLE ON OCTOBER 1, 1984 AS A RESULT OF THE ENACTMENT OF THE BUSINESS REGISTRATION (AMENDMENT) ORDINANCE 1984.

MR BRIDGE EXPLAINED THAT TO ACCUMULATE FUNDS BEFORE THE ENACTMENT OF THE MAIN LEGISLATION ESTABLISHING THE FUND BOARD WOULD AVOID DELAY IN MEETING DEMANDS FOR PAYMENT.

THE FUND STOOD AT ABOUT $10 MILLION AT THE END OF JANUARY AND WAS EXPECTED TO HAVE INCREASED TO ABOUT $16 MILLION BY THE TIME PAYMENTS START BEING MADE IN APRIL.

AS RECOMMENDED BY THE WORKING GROUP ON THE PROBLEMS EXPERIENCED BY WORKERS OF COMPANIES IN RECEIVERSHIP, THE PRESENTATION OF A WINDING UP OR BANKRUPTCY PETITION WOULD NORMALLY BE A PRECONDITION FOR PAYMENTS, HE SAID.

HOWEVER, THIS REQUIREMENT MIGHT BE WAIVED FOR SMALL CONCERNS EMPLOYING LESS THAN 20 PEOPLE, IF THE AMOUNT OF WAGES CLAIMED OR THE VALUE OF UNSECURED ASSETS WERE INSUFFICIENT TO COVER THE COST

INVOLVED.

/+UNCE A