First Union, the trade union for transport and logistics workers, says that an Auckland roading firm in receivership needs to accept some responsibility for the company’s poor situation.
Earlier this week, Blacktop Construction Limited – founded in 1977 and employing 70 people – was placed in receivership, leaving a trail of unpaid debts with roading projects throughout New Zealand and the Pacific region.
A Blacktop director, Petah Dransfield says that while she hopes receivers will reach a positive outcome for staff, industry-wide systemic problems contributed to Blacktop’s demise: “We have some very long serving staff, who have been very loyal – it’s very sad things have come to this.”
Dransfield goes on to describe systemic problems within the industry, with companies bidding for roading contacts with unsustainable, low and unprofitable tenders. She says that Blacktop has been trying to sell down assets: “To look after creditors and staff, and to do the best we can.”
Says Dransfield: “People are bidding very low tenders in the roading industry, and for several years we’ve been doing New Zealand roading contracts for very low prices, with debtors paying late, and the outcome is that we are sustaining losses and running out of cash.”
However, First Union transport and logistics secretary, Karl Andersen, is unimpressed with Dransfield’s reasoning, saying that Blacktop must equally share the blame for low wages.
“The lack of an industry standard in rates of pay has led to some companies competing on the basis of labour costs. If there are systemic problems in the industry then Blacktop Construction has to shoulder some responsibility for this, rather than looking to blame others in the industry,” he says.
First Union does not represent workers at the firm, but Andersen says the possibility of people losing their jobs is “terrible news”.
On Monday this week, Blacktop won a Roading New Zealand Excellence Award for its involvement in a project – but then on Wednesday the company was placed into receivership.
Asked if jobs were expected to be on the line, receiver Brian Mayo-Smith from BDO New Zealand declined to comment around what had been discussed with the company’s staff but says that: “We’re assessing Blacktop’s financial situation, including the contracts being undertaken by the company.”
Blacktop was working on a contract for the Fiji Roads Authority, and a report from the Fijian Broadcasting Corporation says receivers had 10 days to satisfy the Fijian Roads Authority as to whether the project could continue to perform to the required standard.
Last month, The Southland Times reported that Blacktop’s Southland resealing projects had left a trail of unpaid accounts and had used local suppliers when completing roadworks for Southland District Council. Blacktop director, Simon Everett admitted to a reporter that it was behind in payments to creditors but committed to paying them.
Blacktop is a family-owned company; the directors are listed as Petah Dransfield, Benjamin and Simon Everett.
