Up to 1,700 jobs axed days out from Christmas as security firm MA Services collapses
Administrators confirmed 1,700 jobs were at risk following the collapse of MA Services. (Facebook: MA Services Group)
In short:
Administrators have been appointed to MA Services, a major security company that provides services to the government and healthcare sectors as well as major retailers such as Coles, Kmart, Amazon and Dan Murphy's.
Up to 1,700 workers could face redundancy.
What's next?
Administrators say are assessing the company's future.
Up to 1,700 jobs have been axed two days before Christmas as a Melbourne-based company that provides security, cleaning and maintenance staff to the public sector and major retailers enters administration.
MA Services listed Coles, Kmart, Aldi, Amazon, Dan Murphy's and several AFL clubs among its clients along with a number of local councils.
It also works with the Victorian government, including by providing security at Melbourne's Southern Cross Station and Federation Square.
According to administrators, the company operates in every Australian state and territory.
The company was placed in voluntary administration on Tuesday, with Jason Tracy and Glen Kanevsky of Alvarez & Marsal appointed to oversee the process.
In a statement, the administrators said there would be significant immediate job losses and the immediate scaling back of services.
"The appointment of administrators has triggered breaches of key licensing conditions, meaning the company is unable to lawfully continue certain core functions," it said.
"We recognise the seriousness of this situation for the 1,700 employees whose roles are directly affected.
"As a direct consequence, regrettably, a significant number of redundancies will occur immediately."
MA Service provided security guards for several major retailers and in Federation Square. (Facebook: MA Services Group)
The administrators said they were investigating the circumstances that led to the company's current position and seeking information from MA Services founder and director Micky Ahuja.
They said they were working with the federal Department of Employment and Workplace Relations to ensure employees received the support they needed regarding their entitlements.
"In parallel, we are evaluating a range of options to preserve continuity of services and future employment opportunities wherever possible," a spokesperson said
"This includes fielding enquiries from a number of parties that may be interested in acquiring the Company's assets."
United Workers Union (UWU) vice-president Lyndal Ryan said she was furious after hearing the news.
"[I feel] distressed for all those security officers who'll be left high and dry just as we move into Christmas and I am angry will all those clients who we warned that this was likely to happen," Ms Ryan said.
"They've decided to choose a fly-by-night company and that company has flown."
Administrators say they explore all options for the future of MA Services and saving as many jobs as possible. (Facebook: MA Services Group)
Ms Ryan said she was expecting the job losses to be across the country, adding many impacted would be ineligible for the Commonwealth scheme that protects worker entitlements after a company collapses.
"Most of the workforce are not permanent residents so they're not entitled to any safety net," she said.
"They expected to be paid this last fortnight's wage. It's unclear whether they'll actually be paid for the hours that they've worked.
"It's just terrible how those workers must be feeling at this moment. Betrayed, I would say."
Coles said it had put interim measures in place at its stores as it looked for new security guards.
"Coles has taken the appropriate steps to prioritise the safety of our team and customers, as well as ensure the continuity of services across the country, as we transition to a new security provider," it said in a statement.
MA Services provided cleaning and security services for the AFLW. (Facebook: MA Services)
Earlier this month, the UWU called on the Victorian government to dump MA Services from all of its security procurement panels after media reports alleged the company had a business relationship with a labour hire firm allegedly owned by a bikie boss.
At the time, MA Services issued a public statement "categorically denying" any wrongdoing.
The company described itself as having a diverse workforce, including a strong representation of women in senior leadership roles.
The ABC has contacted MA Services for comment.