All is not lost, Rosella workforce told after meeting administrators

WORKERS at the struggling Rosella plant have been given assurances about their jobs for Christmas, a union says, but there are no guarantees yet.

By InvestSMART · 6 Dec 2012

By InvestSMART ·
6 Dec 2012

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WORKERS at the struggling Rosella plant have been given assurances about their jobs for Christmas, a union says, but there are no guarantees yet.

The food maker Gourmet Food Holdings and Waterwheel announced it had gone into receivership on Monday.

The group's interests include Rosella, based at Seven Hills, New South Wales, the Auckland-based organic soups and pre-made meals maker Pitango, and the crispbreads and cracker maker Waterwheel, based in Dandenong. The Australian Manufacturing Workers Union's NSW secretary, Tim Ayres, said he was cautiously optimistic about the company's future.

After talks on Wednesday, he said: "Workers have been working really hard this week to ensure that Rosella is continuing to pump out product for supermarket shelves, and the administrator has given commitments about ongoing wages and continued employment."

There were no ironclad guarantees but this was the best possible news so far for the 110-odd workers in Sydney, he said. "There's been very strong interest in the marketplace from buyers who are interested in buying the Rosella operation. The administrators have indicated to the union and to workers that they are prepared to continue keeping people on at work, that they are going to honour their commitments to superannuation and to annual leave. Importantly, this group of workers are still going to get their Christmas holidays."

Mr Ayres said the federal government needed to look at the squeeze effect the Coles and Woolworths supermarket duopoly had on domestic food producers.

Administrators are expected to meet the union again on Monday.

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Frequently Asked Questions about this Article…

What happened to Gourmet Food Holdings, Waterwheel and Rosella?

The article reports that Gourmet Food Holdings and Waterwheel went into receivership on Monday. The group's interests include the Rosella brand (based at Seven Hills, NSW), the Auckland-based soup and pre-made meals maker Pitango, and the crispbreads and cracker maker Waterwheel (based in Dandenong).

Are Rosella workers guaranteed their jobs after the receivership?

Workers were given reassurances that administrators have made commitments about ongoing wages, continued employment and honoring superannuation and annual leave — and that staff should still get their Christmas holidays. However, the union said there are no ironclad guarantees yet.

How many Rosella employees are affected and where is the Sydney site located?

The article refers to about 110-odd workers in Sydney. Rosella’s operation is based at Seven Hills in New South Wales.

Are there buyers interested in acquiring the Rosella operation?

Yes. The administrators told the union there has been very strong interest in the marketplace from buyers interested in buying the Rosella operation, and the administrators are managing that process.

What commitments have administrators made to Rosella staff?

According to the union, administrators have committed to continuing to keep people on at work, paying ongoing wages, and honoring superannuation and annual leave entitlements — though these commitments stop short of guaranteed long-term job security.

What did the union say about the future of the company?

Australian Manufacturing Workers Union NSW secretary Tim Ayres said he was cautiously optimistic after talks with administrators, noting the hard work of staff to keep products on supermarket shelves and the strong buyer interest in the Rosella operation.

When will administrators and the union meet again about Rosella’s future?

The article says administrators were expected to meet the union again on Monday to continue discussions about the business, staff and potential sales.

Does the article mention broader industry issues that everyday investors should watch?

Yes. The union raised concerns about the squeeze effect of the Coles and Woolworths supermarket duopoly on domestic food producers, suggesting investors might monitor how supermarket concentration can pressure supplier margins and industry stability.