Workers at Hallam carpet maker Feltex face an uncertain future.
By Rebecca Fraser
WORKERS at a Hallam carpet manufacturer fear losing their jobs as their employer faces financial ruin.
New Zealand-owned carpet maker Feltex faces an uncertain future, owing about $140 million to the ANZ Bank.
The Hallam South Road plant employs about 17 workers, and one staff member this week said they were all facing an uncertain future.
New Zealand brothers Graeme and Craig Turner, principals of bedding giant Sleepyhead, have proposed to recapitalise Feltex.
Feltex spokesperson John Walsh said the ANZ Bank expected to make known this week whether the offer was acceptable.
Mr Walsh said he was unable to comment about workers’ job security.
Feltex employs about 500 Victorians, and the worker at the Hallam plant, who declined to be named, said many feared that if they did lose their jobs there would be no money to pay their redundancies.
“I think it’s hard for us to make any comment on the medium or long-term situation until we get a bit more certainty as to whether or not we are going to get something to fly,” Mr Walsh said.
“We’re very conscious that all staff in New Zealand and Australia find the current situation difficult. There is a lot of uncertainty for them.
“We are trying very hard to keep staff as informed and up-to-date as possible, but we are also not wanting to get into a situation of predicting the future.”
Textile Clothing and Union of Australia (TCFU) Victorian secretary Michelle O’Neil said workers were waiting for a decision and were concerned for their future.
The TCFU met with the ANZ Bank on Monday, and Ms O’Neil said the union was assured it would be kept informed of any updates to the situation.
Ms O’Neil said TCFU was also concerned for workers’ entitlements and feared that many workers would find it difficult to find next jobs in the textiles industry despite being highly skilled.
The Hallam plant, which helps produce synthetic yarn, has been open for 17 years, and the staff member said about two employees had been there since opening, with many reaching 10 years of service.
He said a majority of workers lived in the local area.
“I don’t think anyone knows what is going on. It is all in the hands of the banks,” he said.
The worker said the plant was also struggling to get supplies due to the company’s financial situation and now had to pay up front for raw materials.
If the plant was to fold, the move would be another blow to the local economy. In July, 580 jobs were axed when Coles Myer announced it was closing its Hampton Park distribution centre. Many employees lived in the City of Casey and its surrounding suburbs.
