Unions set to pursue Melbourne businessman Peter Gillon over company collapse

The Australian Manufacturing Workers’ Union plans to pursue the owner of an engineering firm which collapsed owing $6.5 million in entitlements to 80 workers.

Metaltec Precision International was placed in administration in mid-August. The company was owned by Gillon Group, a Melbourne-based company with interests in property (its website claims to have $1 billion worth of projects under development) construction and engineering, agribusiness, manufacturing, tourism, retail, logistics and health.

Gillon Group is owned by Peter Gillon. He purchased Metaltec from now-collapsed conglomerate Austrim Nylex back in 2003.

On August 21, the company was purchased out of administration by West Australian firm Hoffman Engineering.

AMWU Assistant National Secretary Glenn Thompson says around half of Metaltec’s former staff have been re-employed by the new owners, but he says former staff are furious that $6.5 million worth of entitlements have not been paid.

Thompson says the Government’s General Employee Entitlements and Redundancy Scheme will cover some of the outstanding entitlements, but there will still be “significant shortfall”.

Thompson says the union is continuing to target Gillon in the hope of recovering some of the lost entitlements.

“We are looking at all our legal options to see what we can recover. He’s got some 80-plus legal entitles and we’re obviously perusing him to recover something for our members.”

Gillon Group said Peter Gillon was on holidays and unavailable for comment.

The union stepped up its campaign earlier this month when it held a BBQ for members outside Gillon’s Melbourne home.

Thompson said the group was warmly welcomed by neighbours.