Staff sweat on Ansett money

[Wirraway]

AAP

Staff sweat on Ansett money
CANBERRA|Published: Tuesday September 17, 10:31 AM

Ansett administrators warned legal action by a superannuation company could substantially reduce redundancy payouts to workers of the failed airline.

Ansett administrator Mark Korda yesterday raised hopes of raising $1 billion and paying former Ansett staff close to their full entitlements.

But fellow administrator Mark Mentha said a complex legal fight in the Victorian Supreme Court between the administrators and trustees of the Ansett Ground Staff Superannuation Fund could jeopardise any payout.

Administrators and the trustees are arguing whether employees would be paid out at a resignation level or at the higher retrenchment level.

Mr Mentha said workers would receive quarterly instalments of further payments starting at Christmas if the $200 million legal challenge is unsuccessful.

"There's only so much money to go around and Mark and I are saying, `look, we're doing our best to get the employees paid in full'," he said.

"But if there is a redistribution amongst the employees, it means you are advancing the entitlements of one set of employees over the other."

©2002

[rescue 1]

I wonder if they are sweating on theirmoney?

[gaunty]

Nup they get paid first and whatever.

[Rich-Fine-Green]

The two Marks could always accept a fleet of slightly used & slightly dented (YMEN) airliners in part lieu of their 200M admin fee.

Not to mention all the promo gear stocked in the top floor of the ex-headquarters.

They would have a supply of blue baseball caps for life.

I'm sure they could also find a practical use for 1000 Toomey - 'Absolutely' posters!.

My suggestion for an alternative use for the posters wouldn't work as the printed side is too glossy.

[Buster Hyman]

...Ahhh, so that's why the $hit didn't stick to him huh???

[Airtart]

Ansett's administrators defend Govt's demand for return of loan

Ansett's administrators have defended the Federal Government for demanding the return of its $328 million loan, which covered the first eight weeks of entitlements for the airline's former workers.

At the third creditors meeting today, former staff expressed anger at the government's position, particularly as it is still holding on to the proceeds of the airline ticket levy.

Up to 15,000 of Ansett's former staff are still owed about half their unpaid entitlements.

But administrator Mark Mentha told the creditors not to expect too much from the Government.

"We didn't have that money, so the advances to the employees could not have happened without the Government loaning that $328 million," he said.

"And they have done that to lessen the burden and the hardship on the employees, so the real question now is what more can the Government do and that's something the creditors have asked us to re-look at," he said.


Successful meeting

Meanwhile, the ACTU has declared the Melbourne meeting a success, saying former employees have a better understanding of the issues facing the administrators.

Former staff were told it is still hoped they will receive an average of 92 cents in every dollar owed.

That will drop to 74 cents if no planes are sold.

The ACTU's Richard Watts commended the administrators' explanation of the issues.

"For the first time it's been explained to them that the Federal Government truly is double-dipping, that they will fall short of 100 cents in a dollar, that it is very difficult to sell the Ansett assets, particularly the planes, and that if there is a war in the Middle East it will be nigh-on impossible to sell the Ansett planes," he said.


Payments by Christmas

Ansett's administrators have told former employees they are aggressively pursuing the realisation of assets, despite the difficult climate.

Mark Korda and Mr Mentha told the creditors they have realised $630 million since Ansett's collapse and hope to take the figure up to $1 billion.

Most of the main and regional assets have been sold but sales of parts and aircraft are being affected by the downturn of the global aviation market.

The administrators hope to begin issuing quarterly instalments of outstanding payments at Christmas.

But former employees remain sceptical.


Levy

Meanwhile, Australia's peak union body, the ACTU, claims the Federal Government's $10 air ticket levy is not being used to pay outstanding entitlements to former Ansett employees.

ACTU secretary Greg Combet is also accusing the Government of insisting on the repayment of its loan to the Ansett administration.

"It's clear that it wants the full repayment of that loan, and at the same time, keep the ticket tax," he said.

"So, they are double dipping, they do have a lot of explaining to do, particularly to the Ansett staff and their workers.

"The unions have called on the Government to put that $10 ticket tax money into the Ansett administration so it can benefit the workers."

[Going Boeing]

The second hand aircraft market is pretty grim at present but the administrators attempts to sell the ex-Ansett aircraft is made much more difficult by the lack of proper record keeping by AN maintenance - some of the B737's have virtually no records of their service status. It does not bode well for former AN staff to get a high payout.

[Ash767]

The Ansett crises was just an excuse for the government to hit us with another tax. The ticket tax was supposed to go towards Ansett employee benefits. The government have raised about 100M so far. So why don't they throw in the rest of the loan (228M) and help out the 16'000 odd employees.

Surely this would be better for the Australian economy than asking for the 328M back. I do not mind paying an extra $10 on a ticket until the amount needed is achieved to help out fellow Australians!!

Ash767