GUNNS employees are being told there will be no money to pay their annual leave and other entitlements unless the federal and state governments compensate the company for exiting native forest logging.

Unions Tasmania Secretary Kevin Harkins says “the claims from local managers to workers is worrying, as they indicate the company is close to insolvency.”

"Once again we see workers and their families paying the price for the monumental failures of management and government," Mr Harkins said.

"Employees have already been told to hang around and wait while Gunns and the Federal and State Governments squabble over compensation, and as a consequence those workers have burned up much of their annual leave and notice entitlements.”

"Now they are being told by local managers there is no money left to pay out any remaining entitlements.”
"If Gunns can't pay staff entitlements today, then it's clear that workers will end up at the back of the queue.”

"Well, before one cent is transferred from the Federal or State Governments to the executives at Gunns or anyone else, we want rock-solid commitments that meeting the entire costs of employee entitlements is the number one priority.”

"Tasmanian workers and their families are being used as pawns in a game between these powerful players. They are already under enormous stress because of the upheaval in the timber industry and this is only making it worse.”

"It is time that workers were put first for a change."