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LHMU News

Latest - ABC Learning and childcare workers

Wed 19 Nov 08

ABC Learning is in receivership as they owe over $1 billion to the banks and other creditors. There is a great deal of uncertainty as the receivers talk to government, parents and LHMU members to discuss the future of the company.

At the first creditors meeting on 18 November, hundreds of ABC childcare members were represented by six LHMU childcare workers and National Secretary Louise Tarrant. They were supported by Neal Swancott LHMU National Legal Coordinator, Solicitor John Payne and Senior Accountant Robert Corben who is an expert on insolvency.

What do union members want?

Staff want certainty and to keep centres open
ABC Centres need to remain open to be viable. Centres are only viable if skilled professional staff continue to want to work in ABC centres. ABC centres are vital to the community, children and staff.

Creating a sector people want to work in
The workforce is the biggest factor that affects the quality of care for children. If professionals have to leave their centres, continuity of care will be interrupted for hundreds of thousands of children.

The sector already has a high rate of turnover. Experienced and qualified staff need to be maintained, not encouraged to leave.

Being rewarded for service to children and families
Entitlements and continuity of employment needs to be protected no matter who owns ABC or your ABC centre. 

What’s been happening?

Creditors first meeting
At the meeting it was revealed that $31 million dollars worth of accrued leave was owed to ABC Learning workers. LHMU will meet with the receivers next week to discuss a business plan with timeline for all centres across Australia. The receivers said they are focussing on maintaining centres beyond 31 December 2008.

Union members win some security
The LHMU met with the receivers, who are in control of ABC, and got them to agree that any ABC staff that had applied and approved leave before 6 November will be paid. They are also agreeing to other leave on a case by case basis. Unfortunately some workers’ entitlements that accrued before 6 November are still not secure.

Government provides a mini bailout
The government has given $22 million to the receivers. This does not mean your accrued entitlements are secured. But it does mean that most centres will remain open until 31 December.

The LHMU met with the government asking for greater support in keeping centres open, protecting job security and your entitlements. At the moment the Government is unsure what it will do.

We need to stick together and be as loud as possible to make the receivers and government listen! So far over 300 more ABC workers have joined their union to make this happen.

The plan to win

Creditors meeting
At the creditors meeting Neal Swancott and John Payne were appointed to the Creditors’ Committee. This will give LHMU and members the opportunity to monitor and make decisions about the ongoing operation of ABC Learning.  LHMU members spoke about the effect the current crisis was having on their lives.

Speaking to government
Union members are lobbying government to provide a solution to the current problems facing ABC staff.

Members are signing and sending letters to the Deputy PM Julia Gillard, so the Government knows it’s important ABC centres stay open and your entitlements are protected. Union members will be sending testimonials to key politicians to make sure they know what is at stake.

What can you do?
Get information out to your work mates by being a union child care advocate
Speak to your work mates about joining your union and making their voice heard.

 

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