UP TO 12 staff at Wynyard’s Vincent Industries face an uncertain future with expressions of interest sought on redundancies.
A further eight jobs could also go if the business does not retain its contract com tenders were out this week and their current contract expired to manage the Wynyard Waste Transfer Station owned by the Waratah-Wynyard Council.
Leg 1Vincent Industries is an Australian Disability Enterprise that has been operating since 1976. It employs 50 people at its Wynyard textile factory.
The factory provides employment and training for people with a range of disabilities.
Its core business is to take second-hand clothes that have not been sold at charity stores and prepare them for export as rags.
Last financial year, the company’s losses, based on earnings before interest, taxes, depreciation and amortisation, was $385,549.
A grant from the St Vincent de Paul Society that covered the loss was all that kept the doors open.
“We were still struggling and I had to try to get normal working capital and secured a loan from St Vincent de Paul,” general manager Andrew Power said.
“I have outlined a repayment schedule so that we have the fiscal discipline but it also means we have to make some difficult decisions around staffing levels.”
The last time the company made a profit was in the 2008-09 financial year. This can be attributed to a number of factors, including an increase in staff wages, a high Australian dollar, shipping costs, a long-term drop in rag sales and a workers’ compensation insurance premium, which has tripled due to claims.
The losses from previous years came out of cash reserves but when they ran out in 2011-12, Mr Power negotiated the St Vincent de Paul grant to cover the loss.
This week, Mr Power held two meetings to inform staff and guardians of the situation.
This story Administrator ready to work first appeared on Nanjing Night Net.