Cash will continue to flow through Australia after Armaguard and major banks and retailers reached a $50 million deal to ensure their services can be easily accessed for at least another 12 months.
The deal will be formally announced on Monday ahead of mass handout of the prospectus on July 1.
Australia’s big four banks – ANZ, CBA, NAB and Westpac – have partnered with the four largest retailers – Wesfarmers, Coles, Woolworths and Australia Post to help the cash-in-transit distributor stay in business.
The financial injection comes after Armaguard’s parent company, transport and logistics giant Linfox, owned by Lindsay Fox, in March rejected a $26 million emergency financing from the same group that is helping it now.
The deal is understood to be submitted to the competition regulator for approval on Monday.
The financing is reportedly contingent on Armaguard agreeing to efficiencies and cost savings under agreed-upon bailout conditions.
TWU deputy national secretary Emily McMillan said there are around 1,400 workers employed by Armaguard to move cash around the country who have had to deal with the uncertainty of the future of the business in recent months.
Cash will continue to flow through Australia after a $50 million deal was reached between Armaguard and major banks and retailers, to ensure their services can be easily accessed for at least another 12 months.
Australia’s big four banks – ANZ, CBA, NAB and Westpac – have partnered with the four largest retailers – Wesfarmers, Coles, Woolworths and Australia Post to help the cash-in-transit distributor stay in business.
“This agreement is a welcome relief for our members who have faced months of uncertainty and disturbing headlines about the future of their employer,” he said.
McMillan said the TWU was asking bank customers to pay to maintain operations.
“While this news brings optimism about job security for the coming year, wealthy banks and retailers must ensure the long-term viability of cash transportation operations by ending the restriction on transportation contracts for a service that our community needs,” he said.
‘Regional communities and many members of society still rely on cash transactions. It’s a dangerous job moving money around this country, where the industry is tragically familiar with armed robberies and workplace deaths.
“Cash transport operations and drivers must be adequately remunerated to avoid additional pressures to take shortcuts on security and remain financially viable.”
More to come