ACC to support Mainzeal workers
Accident Compensation Corporation said today it is taking over existing and future workplace injury claims from collapsed construction company Mainzeal Property and Construction.
ACC said it had terminated its accredited employer contract with Mainzeal following the appointment of receivers.
Mainzeal was a self insurer which meant it was responsible for providing support for workers injured on the job, including weekly compensation where required.
Any Mainzeal employees with questions or concerns about an at-work injury claim may contact ACC directly on 0800 101 996.
Yesterday, Mainzeal's receivers, PricewaterhouseCoopers partners Colin McCloy and David Bridgman, announced that about 60 Christchurch workers would be made redundant, out of about 200 nationwide to lose their jobs.
The Christchurch employees losing their jobs were carpenters, project and site managers, quantity surveyors and administration staff. Many of the carpenters have been snapped up by other Christchurch construction companies.
The receivers are also in negotiations with a few companies wanting to buy Mainzeal and/or its work contracts, but are giving no indication of when a sale or sales are likely.
Mainzeal was placed in receivership on Waitangi Day at the request of its owner, Richard Yan, a Chinese businessman who lives in Auckland.
The day before Waitangi Day, the company's independent directors, including Dame Jenny Shipley and former Brierley boss Paul Collins, quit as directors.
"With the suspension of work on all Mainzeal sites, the receivers have found it necessary to review the company's staffing level in order to urgently reduce cash operating costs, and as a result, a number of staff have been made redundant," the receivers said.
They were still reviewing about 48 Mainzeal work sites to determine which projects to continue with. They would try to talk to all site owners in the coming days. About 16 of those sites are in Christchurch.
Mainzeal and its associated companies had about 180 employees in Christchurch, of whom up to 60 had been made redundant, a spokeswoman said.
The receivers' spokeswoman said that nationwide, Mainzeal had about 400 employees and associated companies had about another 150.
Only about 15 staff at Mainzeal Property and Construction escaped the axe. Most of the Mainzeal staff at the joint venture, MWH Mainzeal, managing Canterbury earthquake repairs for insurer Vero, had kept their positions.
"We are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment," McCloy said.
"We understand the importance of a prompt and efficient management of this receivership and we remain committed to working as quickly as possible through this receivership."
People in the industry say the causes of the collapse included more than $30 million of leaky building claims, and a disputed contract over Mainzeal's work on the upgrade of the high voltage line from Benmore to Haywards, near Wellington.
Mainzeal had a reputation for winning contracts on low prices but that left it with tight margins on the work it secured.