AWU Backs Plan to Resurrect Pan

Date: 11 August 2003

The Australian Workers' Union yesterday announced its backing for a bid to resurrect the complimentary medicines manufacturer Pan Pharmaceuticals which has been in Administration since May following the re-call of 1624 products manufactured by the company.

The AWU, who represents Pan's remaining 120 employees, was approached by a consortium of investors lead by Fred Bart who outlined their proposal to purchase the company and keep it operation.

Under the plan workers' entitlements would be guaranteed through a trust fund and the existing employees' jobs would be secure. Also the consortium would purchase Pan founder Jim Selim's stake in the company as well as fully pay out trade creditors by June 30, 2004.

AWU State Secretary Russ Collison said that the proposal is being supported by the AWU because it is the only proposition being put forward where manufacturing jobs would remain in Sydney.

"We have set criteria for any possible buyers of Pan, which includes a pre-requisite of ensuring that the workers' jobs and entitlements would have to be guaranteed and that manufacturing would remain based in Sydney. This consortium has met those criteria so they have our backing." Mr. Collison said.

Mr. Collison also said that the workers at Pan will be in a unique position where they will have a vote on their possible new boss.

"What makes the future of Pan Pharmaceuticals so interesting is that the workers directly will have a vote in which proposition, who gets to buy the business, so we see an unusual situation where Pan's workers will be able to engage in a beauty parade to see which employer they want to have employ them." Mr. Collison said.

The AWU is holding a meeting of employees tomorrow at 8.00 am to full explain the proposal.

For further information

Contact:	Paul Howes
Union:	The Australian Workers' Union Greater NSW Branch
Phone:	02 9897 3644
Contact Mobile:	0425 238 901
Fax:	02 9897 1481
Email:	phowes@awu-nsw.asn.au
WWW:	http://www.awu-nsw.asn.au

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