First crack in Aust Ansett-Tesna deal
MELBOURNE, Jan 11 AAP|Published: Friday January 11, 7:08 PM
The first crack in the Ansett sale appeared today when unions warned prospective owner Tesna the deal was off unless $240 million of employee entitlements were secured next week.
Tesna has an in-principle agreement to purchase Ansett's mainline services.
The consortium, headed by Melbourne businessmen Solomon Lew and Lindsay Fox, will take over operations on February 1 after a creditors' meeting on January 29 authorises the sale.
But what was anticipated as being the rubber-stamping of a done deal could backflip if employees, who make up the bulk of the airline's creditors, follow union advice and opt to protect millions of dollars in entitlements.
"Tesna is running out of time," ACTU advocate Richard Watts told AAP today.
"If the matter of entitlements is not resolved next week it is likely the deal will be dropped."
An enterprise agreement signed by Tesna and five key unions last month included a five per cent profit share agreement and a commitment by Tesna to take on and secure entitlements for 4,000 employees.
Mr Watts said a union team had been waiting since Christmas and through the New Year period for documents securing the entitlements either by bank guarantee, insurance bond or signing off of a fixed asset such as a Sydney terminal.
No documents were forthcoming.
"It's really taking it to the brink, but unions are serious," Mr Watts said.
"Ansett's biggest union the ASU (Australian Services Union) has advised its members not to accept job offers until the issue of entitlements is resolved.
"We've been promised documents on a daily basis but they haven't been arriving."
Securing $240 million could take months and any plan would take weeks to analyse to ensure it was safe.
"We're at the 11th hour. Perhaps they (Tesna) are calling a bluff but they're calling the wrong bluff. The unions will not let Ansett Mark II go the same way as Ansett Mark I," he said.
"Employees want to know their entitlements are safe. If Tesna doesn't come through employees won't vote for sale.
"They will vote for liquidation."
Ansett administrators and Tesna were contacted but were not able to comment this afternoon.
By Jane Williams, Industrial Correspondent