Several weeks after being dumped from the Sino Iron project in the Pilbara, Austrian contractor AE&E has been placed in administration leaving hundreds of workers at the Worsley Alumina project with an uncertain future.
According to the Australian Securities and Investment Commission an external administrator and controller was appointed by AE&E today.
AE&E is currently constructing the $500 million Worsley Multi-Fuel Cogen Power Plant at Collie and employs about 100 people there.
The company employs 530 staff at the Worsley site which is run by a joint venture including BHP Billiton, and a further 130 staff at its head office in Sydney.
Griffin has contracted AE&E to build the plant which will be operated and maintained by Worsley.
It was also the contractor responsible for building the power station at the Sino Iron project.
But last month, CITIC Pacific sacked AE&E alleging the contractor had failed to meet its material obligations in the Pilbara.
About 250 workers were employed on the Sino project.
BRI Ferrier has been appointed administrator of AE&E Australia Pty Ltd.
AE&E reportedly has debts of more than $40 million.
The Australian Manufacturing Workers Union has demanded that AE&E guarantee that all money and leave entitlements owed to AE&E employees at the Worsley plant be paid out by the administrator.
"The decision couldn't come at a worse time for Collie workers and their families," said AMWU State Secretary, Steve McCartney.
"Just 11 months after Griffin Coal went into administration we are faced with the same situation at Worsley.
AMWU has been pushing for written assurances for workers entitlements.
"Given AE&E's recent record of being evicted from the Sino Iron Ore Project for failing to meet its obligations as a contractor, why should our members trust merely their word, why won't they put anything in writing?" said Mr McCartney.
"Workers and their families in Collie deserve to be assured of their entitlements and future employment on this project," he said.
A spokeswoman for BHP Billiton, which is the majority owner of Worsley, said the company had no comment.
AE&E's Austrian parent company was placed in administation last month.
