By Brian Robins
As many as 500 employees of NSW electrical contractor, the Heyday Group, are believed to be out of work following the collapse at the weekend of parent Hastie Group, making it the latest in a spreading round of corporate failures in the construction industry.
Union officials said the employees were told they were out of a job when they turned up for work today.
Heyday group is one of the largest data and electrical contractors in NSW and the ACT, with offices also in Wollongong and Newcastle.
"Employees were told they didn't have jobs when they turned up for work this morning," one union official said.
"This has been on the cards for many months, following the company's exposure to questionable dealings in the Middle East."
Hastie Group, the parent of Heyday group, disclosed on Friday $20 million of losses following the discovery of accounting irregularities. The disclosure came amid lengthy negotiations with the company's financiers which were aimed at recapitalising the company following heavy losses.
The losses at Heyday group follow as many as 400 jobs which are expected to be lost with the planned closure of the Kurri Kurri aluminium smelter in the Hunter Valley announced last week. In addition, as many as 800 jobs are exposed to the anticipated shutdown of the Kurnell oil refinery, with a decision here due mid-year.
Sites 'occupied'
Heyday employees were notified by letter today informing them they would not be paid this week following the Hastie Group's collapse at the weekend.
"They've occupied all construction sites and they're waiting to see what happens," Electrical Trades Union NSW branch organiser Mick Doust said.
"Keeping their jobs is the main thing, because they're so scarce at the moment," he said. "They're involved in big jobs, and they want to ensure continuity of employment."
Large construction projects Heyday group tradesmen are working on now include the Grocon project at 167 Castlereagh Street in central Sydney, which will become the new ANZ Bank CBD site. Also under construction are the Equinox project in the city's inner west Alexandria, and also the new ASIO building project in Canberra.
They've occupied all construction sites and they're waiting to see what happens
The union has 600 members caught up in the collapse across NSW and the ACT, with another 400 Heyday employees in Queensland and Victoria, Mr Doust said.