HUNDREDS of workers at manufacturer CMI Industrial have been guaranteed another six months' work following a creditors meeting putting the company in liquidation.
Australian Manufacturing Workers Union (AMWU) Victorian secretary Leigh Diehm said those who attended yesterday's meeting were shocked to hear how dire the company's finances are. Its debts are estimated at up to $40 million and include $1.7 million in unfunded superannuation.
"We knew it was bad, but we didn't think it was as bad as it came out this morning," Mr Diehm said.
Administrators and receivers last month took control of CMI Industrial, a supplier for Ford, after talks failed to sort out bills with its landlord.
Officially placing the company into liquidation yesterday, however, will allow administrators to find a buyer, which could save remaining workers from losing their jobs. About 250 workers at four Victorian plants, and 150 in Toowoomba, Queensland, will continue to work during the six-month reprieve.
Ford did not respond when asked if it had any interest in purchasing its key parts supplier. AAP