More jobs gloom as engineering firm collapses
Mark Hawthorne
May 28, 2012


MORE than 2000 jobs will be axed after embattled engineering company Hastie collapsed under an estimated $500 million of debt.   

In a major blow to the Gillard government, most of the job losses will come in the economically troubled states of New South Wales and Victoria.

BusinessDay believes up to 1300 Hastie Group staff in the two states will be told today they no longer have work.


The south-eastern states have borne the brunt of recent job losses in Australia, with Qantas last week axing 500 engineering jobs from its heavy maintenance division, the majority at Tullamarine. News Limited is also days away from announcing major job cuts as it restructures its largely print-based publishing business, with up to 400 editorial jobs set to go, while Caltex has flagged it might shut down its two Australian oil refineries in the next year.   

News of the collapse of Hastie Group - the nation's biggest provider of airconditioning and refrigeration systems for office towers, apartment blocks and hospitals - comes on the eve of a Labor caucus meeting in Canberra at which jobs will be high on the agenda.

On Friday, Hastie Group non-executive directors Lindsay Phillips and Harry Boon quit after a $20 million ''accounting irregularity'' emerged in the books of one of the company's Queensland divisions. That came as Hastie was in negotiations with its banks over a refinancing deal.

All four of Australia's major banks form part of an international syndicate that has lent $500 million to Hastie. ANZ is believed to have the biggest exposure, and is owed an estimated $150 million.   

At the weekend, Hastie Group executives met advisers from corporate reconstruction specialist PPB, but last-ditch

attempts to revive the recapitalisation failed. Early yesterday, the board decided to appoint PPB as administrator and McGrathNicol as receiver of the company. Both firms will be officially appointed today.

After announcing a $150 million December-half loss, Hastie Group's ASX market value plunged to just $21 million before the company was put in a trading halt on April 13 and suspended from trading four days later. That was the result of a dispute over alleged unfair payment of ''performance bonds'' to a builder in the Middle East.

The company has reported the $20 million accounting discrepancy to the Australian Securities and Investments Commission.

Hastie is a conglomeration of more than 50 business units across Australia, New Zealand and Britain. Some of its profitable units will continue to operate, as will crucial business units that provide maintenance services to hospitals and apartment blocks.


Read more: http://www.theage.com.au/business/more-jobs-gloom-as-engineering-firm-collapses-20120527-1zd6h.html#ixzz1w6dy6ibL

Could it be perhaps because there seems to be so many.  Yes job loses happen all the time, but so many.  2000 here, 500 there, 600 elsewhere.  Then they turn around and say, we have low unemployment.  Does it not seem very strange?.   

Quote:


you wait, the ABS will give us the great news of lower unemployment and the pollies will be singing the praise of the most enviable economy in the world LOL

Good thing Swan has them covered with all the jobs he is creating.

Yes nail, and Mr Abbott said that all unemployed under 50, will have to do work for the dole rubbish.   

Johnny Howard said small business is the backbone of our nation. If that's the case, our back is broken because small business has been suffering badly over the last couple of years.

Sir Spot of Borg wrote on May 28^th, 2012 at 7:22am:


Well nobody else answered it so I guess I have to. The reason is that because the current government is pushing "jobs" and basing their policies around creating "jobs" and its their advertising strategy then the opposition (libs + media) need to focus on it too. However they focus on any job loss anywhere to make it seem like the govt is "failing".

SOB

Ex Dame Pansi wrote on May 28^th, 2012 at 2:52pm:


I didnt say they were creating jobs. I said they are saying they are creating jobs. Apparently they are taking credit for the 8k jobs @ ginas place and i heard the number 17k somewhere too for some mining sector jobs thing too. Thats it. Nobody else. Just miners who prolly went from 1 job straight to another anyway.

Im no gillard fan. I just dont like any of this crap thats going on ATM. Its all a war of friggin kindergarten. We are just the playing pieces.

SOB