$3.8 mllion in redundancy pay is on its way for miners

REDUNDANT Cockatoo Coal Baralaba mine employees should expect to receive their share of the company's $3.85 million employee entitlement debt in mid-April.

That is according to a source close to the company who said the entitlements were to be paid in full a month after the March 15 Deed of Company Agreement execution.

"It is a top priority and they understand what it's like not to be paid," the source said.

Seventy-five families have been without an income since another round of redundancies swept through the workforce at the coal mine in February, adding to the redundancy tally which began 12 months ago.

The February job cuts followed Cockatoo Coal announcing the Baralaba site would be placed into care and maintenance after the company had been in administration since November last year as it looked for a buyer.

Australian Manufacturing Workers Union state organiser Peter Lyon said redundant employees had previously been supplies with "two or three" dates to expect their entitlements.

"The administrators are saying it has something to do with the rules they have got to work under to put a company into administration and also I don't think they had the money, there were some over-inflated invoices," Mr Lyon said.

"The people I have been speaking too are devastated by it, they have been living on savings and hoping and hoping that this money comes through and they are just worrying their guts out it doesn't come through.

"A lot of places go belly up and they never ever see their money because the administrators use it all up.

"From what I understand is they have announced two maybe even three dates so far that the money was going to be paid out by and they just keep delaying it.

"I suppose if the money was there to pay all these entitlements out the next day, the company would keep going, it would keep running."

In a letter to Cockatoo Coal employees last week, the company said it would "intend to pay outstanding employee entitlements once there is sufficient funding available to the Deed Administrators".

"Please note that the Company executed the DOCA with Liberty Metals and Mining Holdings, LCC on March 15," the letter read.

"As outlined in our report to creditors, there are a number of conditions that must be satisfied before the DOCA is completed."

The letter claimed "certain administration creditors submitting claims for higher than authorised purchase orders means significant outstanding statutory refunds are due which have yet to be paid" - which saw funds low and employee entitlements on hold.

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