Dismissed Worker's Frat Fury

Illawarra Mercury

Tuesday April 24, 2007

By CHALPAT SONTI

MARINA Defreitas received 10 minutes' notice when she was sacked from her job of 18 years at the Fraternity Bowling and Recreation Club.

The former receptionist is angry the troubled Fairy Meadow club will pay former employees less than what they believed they were entitled to.

The club's administrator has dismissed the claim, saying employees were being paid under the provisions of the Corporations Act.

The club was placed in voluntary administration in 2005 with debts of more than $11 million but was rescued by two Wollongong businessmen and the Friends of the Fraternity organisation.

Their $2 million rescue package, which was approved last month, means existing and former employees are being paid 75? in the dollar, while unsecured creditors will get 25?.

However, Mrs Defreitas said employees had been short-changed as the redundancy portion of their claim would only be paid out at 25? in the dollar, meaning they would get much less than they initially believed.

"Most of what we're owed is in redundancy. Some people have worked there for 30 years and won't get much at all under this."

Mrs Defreitas said she was told 10 minutes before knocking off work one day in March last year, that her services were no longer required. She has since received an apology for that.

Redundancy made up more than half the $9600 she was owed. Instead of receiving about $7300, she will get about $4600.

However, club administrator Robert Brennan said employees were only promised the 75? in the dollar for wages, superannuation contributions and leave entitlements.

Redundancy payments were "at the bottom of the queue" and had only ever been guaranteed at 25?, the same as for unsecured creditors.

"We've not changed anything. It's been our position for the last year and it's as per ... the Corporations Act," Mr Brennan said.

All creditors would be paid by the end of May, when Mr Brennan would also step down as administrator.

"The whole objective has been to keep the club trading and to keep 75 out of 81 employees in employment and we've managed to succeed in doing that. What they're getting (as creditors) is substantially above what they would've got had the club shut."

Trading in the first three months of the year was "substantially up" on the same period last year, Mr Brennan said.

© 2007 Illawarra Mercury

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