It's tough out there......
Aviation firm crashes over unpaid wages
Scott Sawyer | 9th Aug 2014 8:39 AM
THE Supreme Court has given the green light for creditors to step in at a Sunshine Coast-based aviation company now officially in liquidation.
Queensland Institute for Aviation Engineering, established at Caloundra Airport in 2000, had its death knell sounded in Brisbane yesterday after employees took action over unpaid wages.
Independent Education Union of Australia's Queensland branch secretary Terry Burke said employees had approached the union after claiming they were owed almost $180,000 in unpaid wages and superannuation.
"The QIAE left employees no other alternative in the face of non-payment of nearly six months' wages to make this application for liquidation," Mr Burke said.
"While little payment of wages can be expected from the company's assets, the liquidation order does mean that employees can now apply for assistance from the Federal Government's GEERS scheme."
A Brisbane-based accounting firm was reported to have been appointed as official liquidator, meaning creditors, including the Sunshine Coast Council, will move in to retrieve what they can.
Councillor Chris Thompson said QIAE owed council $200,000 for a hangar project at Sunshine Coast Airport.
Cr Thompson said council had tried to give the local company, which provided training for about 60 apprentices, pre-trade and international students, as much time as it could to reconcile the debts.
"We tried to give them as long as possible to come good and balance the books," he said.
"Our position is we need to protect the public's money and ratepayers' funds.''
Institute co-founder Tank Macpherson said he was still in disbelief at the way things had unfolded.
"We don't deny that (staff being unpaid) but we had a workable plan. We knew money was coming in and we were going to pay them on a set date but that wasn't good enough," Mr Macpherson said.
"The union said I should've sacked them (staff)... but because I sold my wife's wedding ring to keep them employed, I did the wrong thing.
"I busted my gut to do the right thing by them."