Australia, Industrial Relations, Transport Industry News

Armaguard to receive $50 million bailout


Major banks and retailers have reached a deal with cash-in-transit operator Armaguard to ensure the transportation of cash in Australia can continue for at least the next 12 months, in a move that has been applauded by the Transport Workers’ Union (TWU).

Armaguard is Australia’s last remaining cash transport company and will receive $50 million from its eight largest customers in the form of monthly payments as of July 1.

These payments come under the condition the company meets specific efficiency and restructuring requirements.

Commonwealth Bank, Westpac, ANZ, NAB, Coles, Woolworths, Bunnings and Australia Post are the eight companies that make up the $50 million bailout, which follows Armaguard’s rejection of a previous bailout offer in March from major banks and retailers.

A dramatic decrease in the use of cash has taken the brunt of the blame for Armaguard’s recent problems. In 2010 over 60 per cent of Australian purchases were made with cash, as opposed to just 13 per cent in 2022.

The TWU had been consistently calling on banking clients to ensure Armaguard’s operations could continue, with roughly 1400 workers previously left in a state of uncertainty around the future of the company.

TWU national assistant secretary Emily McMillan says while the agreement between Armaguard and its clients has brought certainty and relief to union members, there is still a need to future-proof the ailing company.

“This deal is a welcome relief to our members who have faced months of uncertainty and troubling headlines about the future of their employer,” McMillan says.

“While this news brings optimism of job security for the next year, wealthy banks and retailers must ensure the long-term viability of cash-in-transit operations by stopping the squeeze on transport contracts for a service our community needs.

“Regional communities and many in society still rely on cash transactions.

“Cash-in-transit operations and drivers must be paid appropriately to avoid additional pressure to cut corners in safety to remain financially viable.”

Armaguard is a subsidiary company owned by Australian transport magnate Lindsay Fox, who also owns Australia’s biggest private logistics company Linfox.

Previous ArticleNext Article
  1. Australian Truck Radio Listen Live
Send this to a friend