Liquidators appointed for Redstar Transport

By: Mark Gojszyk, Rob McKay & Greg Bush, Photography by: Ellen Dewar


PwC has been been appointed liquidators of Redstar Transport as the company's drivers seek alternative employment

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Stephen Longley and Martin Ford of PwC Australia have been appointed liquidators of Redstar Transport and its associated entities.

According to PwC, Redstar employed around 400 staff across its network of depots in capital and regional cities aross Ausstralia.

It has been reported Redstar was in the process of ceasing operationrs and making employees redundant when the liquidators were appointed. PwC expects the process to be completed shortly.

Stephen Longley says it's a difficult situation at any time, let alone on the eve of the holidays.

"We are doing everything we can in the circumstances to manage the fallout."

PwC states that, due to Redstar having no funds available for the conduct of the liquidation, it will be out of pocket for much of its liquidation work.

"PwC is taking a risk by accepting this appointment, however somebody needs to stand up for these 400 employees and make sure their entitlements are calculated and paid by FEG as soon as possible," Longley says.

PwC has thanked ANZ and Toll for making financial pledges which allowed the liquidators to consent to the appointment. Now that the company is in liquidation, employees will be able to have their entitlements paid by the Federal Government's Fair Entitlements Guarantee (FEG) Scheme.

Reports first began to emerge on social media on the evening of December 21 that Redstar Transport had entered into liquidation. Alllied Express followed this with a statement on its website warning of pre-Christmas delays.

In response, Linfox and Toll amongst others have made pitches to Redstar drivers.

"Linfox has agreed to offer employment opportunities to Redstar workers who may be impacted should the company enter administration and we’re encouraging workers to apply for current vacancies within Linfox and to register for future roles," a Linfox spokesperson says.  

Toll is offering employment opportunities to Redstar drivers, that company confirms. 

"We are running a special recruitment process to help drivers get on board quickly," a Toll spokesperson says.

"Drivers interested in exploring opportunities can contact Toll to call 1800 069 726."

The company is also seeking to approach drivers directly through a recruitment campaign entitled Get Back On The Road With Toll.

"We know you are highly skilled professionals who take great pride in what you do, and have the discipline and attitude that makes a great driver," its communication reads.

"Our team is ready to get affected Redstar Transport employees back behind the wheel before Christmas."

It was only around 18 months ago that Redstar Transport completed a deal to take over Zagami Transport.

TWU response

The Transport Workers Union (TWU) issued a response on December 20 saying it was investigating claims of "drivers being told to return their loads to the nearest depot and interstate drivers being repatriated to their homes.

"The TWU has also been informed that other transport operators have been instructed to cease contracting work to Redstar Transport."

TWU national assistant secretary Nick McIntosh expresses the union concern that company workers are facing such reports so close to Christmas and the need for them to have certainty on such matters.

The TWU adds it has received a commitment from Toll to provide job opportunities for Redstar Transport workers, and that Linfox and ACFS have also agreed to take on a number of workers.

Redstar management has been approached for comment.

 

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