FED: Unionists threaten to sue National Textiles creditors

AAP General News (Australia)
02-11-2000
FED: Unionists threaten to sue National Textiles creditors

CANBERRA, Feb 11 AAP - Prime Minister John Howard's plan to financially bail out 342
sacked textile workers appears shaky after unionists yesterday walked out on talks with
creditors and threatened to sue the company directors including the PM's brother.

Mr Howard had appealed to all stakeholders including unions and creditors to support
a deed of arrangement which promised the retrenched Hunter Valley workers the $11 million
they were owed.

He angrily denied allegations that the $6 million federal and New South Wales governments'
contribution was offered because his brother Stan was National Textiles chairman.

But the workers' union, the Textiles, Clothing and Footwear Union, accused one of two
main National Textiles creditors, Oldtex, of attempting to renege on an agreement reached
during talks Wednesday to repay the entitlements through the sale of $7 million in plant
and equipment.

And the NSW Labor Council last night said it would pursue legal action against the
directors of National Textiles.

Labor Council secretary Michael Costa told unionists the directors had acted disgracefully
in their management of the company.

"The Labor Council has tonight agreed to refer to Labor Council lawyers the possibility
of taking action under corporations law against the directors of National Textiles," Mr
Costa said.

Meanwhile, the Australian Securities and Investment Commission has announced an inquiry
into the company's demise.

AAP rmg/arb/br

KEYWORD: SACKED DAYLEAD

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