FED: Unionists threaten to sue National Textile creditors

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

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 has appealed to unions and creditors to support arangements which promises
the retrenched Hunter Valley workers the $11 million they are owed.

And he has angrily denied allegations that the $6 million federal and New South Wales
governments' contribution was offered because his brother STAN is National Textiles chairman.

But the workers' union, the Textiles, Clothing and Footwear Union, accuses one of two
main National Textiles creditors, Oldtex, of trying to renege on an agreement 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 has told unionists the directors had acted disgracefully
in their management of the company.

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

AAP RTV rmg/wz

KEYWORD: SACKED (CANBERRA)

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