National Textiles workers confront Howard
By Adam Leeman
and Alison Dellit
NEWCASTLE — On February 4, sacked workers from National Textiles protested outside the Williamtown RAAF Base. A delegation of the workers met with PM John Howard in an attempt to secure a commitment that they would receive their separation entitlements following the company's collapse.
National Textiles' bosses claim that the company can pay only $7.2 million of the $11.1 million it owes the 342 sacked workers. Howard's initial response to the workers' plight was to dismiss it as just "economic reality".
In an area hit hard by Howard's "economic reality", unemployment and underemployment are very real prospects for the sacked workers. Many have worked only for National Textiles, some of them for 10 to 20 years.
Among those sacked are 12 married couples. One of the workers, Sue, has worked for the company for 12 years; her husband has worked there for more than 20. They have two children and a large mortgage.
Sue, facing higher interest rates and the GST, is close to panic and is spending all her time helping out at the picket line at the closed mill in Rutherford. "I've no idea what we're going to do", she told Green Left Weekly. "I guess it just hasn't hit me yet."
National Textiles claims it has done all that can be done for the sacked workers. The picketers tell another story.
Only weeks before the company announced its closure, top management including the PM's brother, Stan Howard, awarded themselves a pay rise of $100,000 each. Despite persistent enquiries from the workers late last year about the health of the company, management denied there was anything wrong. Given these reassurances, many workers extended their mortgages.
It now appears that the workers have been paying for the company's poor management for some time. One of the workers, who is pregnant, was told by her doctor that she can no longer be treated because her medical insurance has been unpaid for six months. The money had been deducted from her pay packet, but did not reach the insurance company.
The workers are furious about the federal government's response. Howard agreed to the meeting at Williamtown only after workers threatened to gatecrash his appointments on the Central Coast. Howard declined to drive to the picket line at National Textiles' Rutherford mill to meet with the workers, insisting instead that they meet him at the airport. While most of the picketers were away, the company attempted to get trucks through the line.
Howard at first refused to meet with representatives of the union, wanting to speak only to "ordinary workers". At the meeting, the only commitment Howard made was to table a report by the textile workers' union at the next cabinet meeting.
"Howard said he would think about [making up the shortfall from federal funds]", Steve Davies from the union told Green Left Weekly. "When we asked whether his government would stop this from happening again and ensure that workers got their entitlements, he made no comment."
In fact, the federal government appears to be moving in the opposite direction. Industrial relations minister Peter Reith has a scheme to cap workers' outstanding entitlements at $20,000 if a collapsed company cannot pay them.
In contrast to the government's failure to respond, public support for the workers is growing. The picket receives a steady flow of supporters and well-wishers.
Some workers holidaying on the coast have dropped by with sizable donations. Food, employment support and child-care have been offered, and several local clubs have donated more than $10,000 each. A phone tree has enabled the workers to involve others in organising emergency demonstrations like the one for Howard's visit.
One of those who joined the workers' action at Williamtown, Erin Killion, the Newcastle Resistance organiser, told Green Left Weekly that she was there "because this is bigger than just a group of fucked-over workers. This is about whether the profits of companies are more important than people, in particular the workers who make those profits. National Textiles would not have made any money without the workers, so why are the debts owed to them less important than those owed to other large companies?"
The workers' picket is continuing in order to prevent National Textiles from removing machinery from the mill. "We'll be here until someone comes up with the money", promised Davies, "whether that's the company, the federal government or other creditors."
The picketers need more support. To join the phone tree, drop in at the picket line on New England Highway, Rutherford.