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The Lane Walker Rudkin factory in Christchurch - Source: ONE News -
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Former workers for clothing company Lane Walker Rudkin got their first reduncy payments on Friday, but not from the company or the receivers.
LWR laid off 186 workers - nearly half of its staff - mid May after being put in receivership over a substantial increase in bank debt.
Staff were given immediate notice and received no holiday pay or redundancy.
"Most workers are owed holiday pay and redundancy pay around the cap of $16,420. However ,none of that is guaranteed and the receiver is telling us that even an interim payment on this debt will not be made for another 2-3 weeks," says president of the National Distribution Union (NDU), Robert Reid.
Reid says payments to LWR union members have come from union trust funds and public donations, including the cake stall protests.
The cake stalls were held outside Westpac banks because union leaders say the bank allowed the company to build up significant debt.
Reid says for those redundant staff going on the unemployment benefit, payments do not start until next week.
"This is a horrendous week without any income at all for these people. That is why the union is making payments to workers from its own funds and public donations," he says.
The union on Friday will distribute funds to 41 union members in Greytown and Pahiatua who have been made redundant and next week will do the same for 36 LWR union members in Christchurch.
