Sacked ELE construction workers protest outside Deloitte offices on Queen St in Auckland. Video / Carson Bluck
Finally, some good news for 844 sacked workers of failed construction recruiter ELE: Deloitte receivers last month paid them more than $1.25 million in lost wages and holiday pay, owed when the business declared insolvency just before Christmas.
Deloitte’s David Webb, a receiver of five related companies, saidpayments were made a fortnight ago and receivers were pleased about that.
“Former ELE employees received a first interim distribution on their preferential claim on March 28. This distribution was over $1.25m and was made to 844 employees.
“We are continuing to work with other affected employees to confirm their benefits. This interim distribution included payments towards unpaid wages and annual leave,” Webb said.
Yet that’s only a little over a third of what they are really owed.
Ex-employees, classed as preferential creditors, so far got only 35 cents in the dollar owed. But Webb said that was above the range of 15-20 cents in the dollar initially indicated because of faster-than-expected debtor collections.
“The receivers are pleased to have been able to make an interim distribution at this level, in what has been a challenging situation. We would like to thank the customers of ELE who have paid their accounts promptly and the large number of affected employees for their patience,” he said.
He is confident a second payment can be made in a few months.
In December, a meeting was held for migrant workers laid off by ELE. This was at First Union in Onehunga. Carpenter Guillermo Fabello attended. Photo / Sylvie Whinray
More than 30 people gathered with flags and banners outside Deloitte’s Queen St offices in the event organised by union officials.
On February 20, Deloitte’s first report on the five companies revealed claims by creditors of $12.3m.
Businesses in receivership are ELE Ltd, ELE Management, ELE Holdings, Tranzport Solutions and RISQ New Zealand.
The biggest failure is ELE Ltd which has $10.8m in claims. Secured creditor the BNZ is claiming $5.77m.
Some claims from other secured creditors Carters Building Supplies, vendor finance firm De Lage Landen, Bridgestone New Zealand and PlaceMakers Christchurch are yet to be confirmed.
Employees of that one business are owed $4.08m in pay and Inland Revenue $1.05m, resulting in preferential creditors being owed $5.1m.
Red Aguhar, a laid-off ELE worker, was living in his Toyota Aqua before he found a new job. Photo / Michael Craig
Migrante Aotearoa New Zealand, based in Onehunga, welcomed news of the part-payments of wages and holiday paid to ELE workers.
“Our Filipino community received joyful news from ex-ELE workers,” that entity said, praising media coverage highlighting the plight of ex-employees.
Many offers of employment and accommodation had been received due to the sacked workers’ situations being covered, a spokesman for the migrant entity said.
Webb said all ex-employees of a company connected to ELE, Transport Solutions received full payment.
“They were paid 100 cents on the dollar of their preferential claim as a result of collections. This distribution of over $170,000 was made on March 22,” he said.
An ELE worker fundraising event at Kiwi Harvest, East Tamaki. Many rallied to help the workers when they lost their jobs just before Christmas.
The receivers are now working towards concluding some aspects of the receivership.
Liquidators have now also been appointed to the ELE group businesses, established by Tauranga’s Brent Mulholland.
“This appointment also included the shareholders of ELE Holdings, Brent and Vicky Mulholland, appointing liquidators over the holding company as well. The liquidators’ role will include reviewing the reasons for the collapse of the ELE Group, communicating with creditors, and ultimately winding up the company shells,” Webb said.
Collection of debtors and the sale of ELE Security to Red Badge enabled receivers to transfer employment of most ELE Security employees to Red Badge, he said.
That will result in additional funds being made available to creditors, including employees.
The balance to be collected from ELE Group debtors will, if realised, support the additional distribution to affected former employees, Webb said.
Dennis Maga of First Union said hundreds of packages were distributed to ELE workers in a fundraising drive around Christmas. Photo / Alex Burton
Dennis Maga, First Union general secretary, said at the time workers were suffering financial hardship, many relying on community support and awaiting Philippine Embassy financial assistance.
Some workers were sleeping in their cars due to financial difficulties, he said.
Filipino carpenter Red Aguhar was at that January rally. He had been forced to sleep in his Toyota Aqua on a west Auckland street because he had no money to pay rent.
Since then, Aguhar has found new employment.
Aguhar got money from Deloitte last month, which he said has helped him with transport and accommodation costs.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
