Grieving dad 'gutted' for workers

Bernie Monk embraces a supporter after a memorial service for his son Michael Monk, who was one of the 29 miners killed in the Pike River tragedy. Photo / Herald on Sunday

A grieving father and spokesman for families of the 29 men killed in the Pike River Coal mine says he's "gutted" for Pike River workers after the company went into receivership.

Pike River Coal Limited receivers have announced that about 114 of mine staff would be made redundant effectively immediately.

Staff would receive a maximum payout of $18,700 for wages, holiday pay and redundancy - but that won't include contractors, who are considered unsecured creditors.

People who had worked at the mine for less than a year would also not be entitled to redundancy pay.

Bernie Monk, who lost his son Michael in the tragedy, today thanked contractors on behalf of the families for working "their guts out".

"Some of them worked 18-20 hours a day to try and get our loved ones out and then to be told that they're in receivership and they've got no money - I'm just gutted for them. I'm gutted and I'm going to push the pin and do my upmost to help them now."

However he remained realistic about the role of the receivers.

"At the end, receivers are receivers aren't they? You know, they've got the books in front of them."

He questioned how long it would take the receivers to distribute the money to workers.

"Some of these contractors - they're not big... they have still got wages to pay."

Pike River's receivership would affect all of Greymouth, Mr Monk said.

"It's going to affect all the business around here, it's going to affect everyone. It's a dramatic time for the area."

The receivers met Pike River workers this morning to discuss worker entitlements.

Engineering, Printing & Manufacturing Union (EPMU) area organiser Garth Elliot described the meeting as "pretty angry".

A lot of workers were upset after finding out the company was in receivership and their jobs were in jeopardy on top of losing their "29 mates", he said.

Workers were concerned about losing some of their entitlements such as a month's notice - which was part of their collective agreement.

Workers who had been at mine for less than 12 months would walk away no redundancy pay, which the EPMU would challenge.

"Obviously we're talking to the company about the notice period - the company should be paying that... but that reality really hit home to the guys today and they're very, very concerned."

Some people might only get about three weeks pay at most, he said.

"They committed themselves to that mine...and we think it's only fair and reasonable that the company take that on board, show them some compassion and try and help them out a little bit," he told Radio New Zealand.

Malcolm Hollis, of PricewaterhouseCoopers, has told NZPA the total number of staff employed by Pike River Coal Ltd was about 157, excluding the 29 men who died in the mine, and receivers would work through what would happen with remaining staff.

Receivers were intending to make payments before Christmas.

Greymouth Mayor Tony Kokshoorn said the receivership was not unexpected but should have been delayed until after Christmas.

"There's no compassion one week out from Christmas, these families and the workers at Pike River coal mine have been going threw hell, then all of a sudden they get this bomb shell put on them," Mr Kokshoorn said.

"One week out from Christmas, it's all about money. What about the families of the dead, what about closure?" Questions needed to be asked of NZ Oil and Gas, which had 30 per cent ownership of Pike River Mine, about the timing of the announcement, he said.

There also needed to be clarification about who was paying for recovery efforts as some local contractors who worked on the recovery were yet to be paid, he said.

Receivers John Fisk, Malcolm Hollis and David Bridgman of PricewaterhouseCoopers were in Greymouth yesterday to initiate a handover with Pike River management.

Mr Fisk said the receivership would enable a full consideration of the options available to the company regarding the recovery effort, and in preserving the value of the assets.

The receivers met families of the 29 men yesterday.

He said they would be focused on making a payment to employees before Christmas.

- NZPA