Hundreds of Illawarra jobs are under serious threat as the Wollongong-based Wideform Group of Companies faces a cashflow crisis.Its problems have been brought about by the global financial meltdown and lack of demand from buyers for some of its developments.Wideform employs 700 workers across Australia, including between 150 and 200 in the Illawarra.
Wideform's rise as major industry force Future of Wideform Group in question Its website indicates it also provides work for some 4000 contractors.Unions NSW spokesman Chris Christodoulou said the precarious situation was a major concern for workers and their families ahead of Christmas. "The last thing that the Illawarra can afford to have is a further 200 people out of work," he said.The Mercury understands Wideform was approached by creditor the ANZ Bank six months ago suggesting directors place the company into voluntary administration and a new buyer be sought due to the cashflow concerns.The request was knocked back. Asked to comment yesterday, an ANZ spokesman said the bank "has been providing financial support to Wideform and ... proposed a way forward which would preserve jobs".However, he said the bank had "no plans to place the company into receivership"."Any decision on the way forward is one for the company's directors," he said.It is understood the bank will not extend further financial support to the business.Wideform Group of Companies is chaired by one-time Illawarra Businessman of the Year, Fred (Fernando) Ferreira, who founded the company as Wollongong Formwork in 1974.It has grown into a diversified group with divisions specialising in formwork, building and senior living and aged care. Its major projects in the Illawarra include the $28 million Victoria Square and $85 million Links Seaside retirement village at Wollongong Golf Course.Mr Ferreira could not be reached yesterday, but a company spokesman said Wideform "continues to trade"."The bank is still supportive of the group," he said.Wideform Group of Companies' problems were compounded on Friday when project management and construction firm Bovis Lend Lease cancelled a Wideform formwork contract for four projects in Sydney and Newcastle.The CFMEU said 200 Wideform employees in total, including some from the Illawarra, were working on the Bovis Lend Lease projects.Late yesterday, the CFMEU said Bovis Lend Lease had agreed in principle to find work for the 200 Wideform employees affected by the contract termination. If the workers agreed, they could complete the four projects with contract companies also already working on them.
