Hundreds of staff have been stood down by Western Leisure Services, because the organisation is ineligible for the JobKeeper program.
Western Leisure Services (WLS) operates AquaPulse, Eagle Stadium and the Werribee Outdoor Pool.
WLS chief executive Alison Dixon said 260 employees were stood down on Monday, April 27.
Ms Dixon said she told staff about the stand-down with a “heavy heart”.
“Western Leisure Services has continued to pay all employees, since the state government ordered leisure facilities to close in March,” she said.
“With no revenue coming in, this is no longer viable.”
Ms Dixon said that WLS was ineligible to claim the JobKeeper subsidy on behalf of its employees, because it is a wholly-owned subsidiary of a local government authority, Wyndham council.
“I would like to thank Wyndham City Council for its support in lobbying the state government for funding assistance and for looking for redeployment opportunities for our employees,” Ms Dixon said.
“I remain committed to communicating with, and supporting, employees wherever possible during this difficult time.
“I very much look forward to the day when I can welcome all employees back into our workplace so that together we can rebuild this wonderful business and continue to build healthy lives.”
Under the federal government’s JobKeeper program, about six million Australian workers will receive a fortnightly payment of $1500 through their employer, during the COVID-19 pandemic.
Lalor MP Joanne Ryan has written to Prime Minister Scott Morrison and Treasurer Josh Frydenberg, asking them to “reassess the limitations” on the JobKeeper program.
“I sat in the Federal Parliament when we voted for it – and when Scott Morrison and Michael Sukkar voted against extending it to local government employees,” Ms Ryan said to Star Weekly.
“The workers at Wyndham Leisure Centre are like the millions of workers this government has forgotten during this crisis.
“They pay their income taxes to Canberra just like any other worker who receive JobKeeper. Why are they exempt from this payment?”
But the federal assistant treasurer Michael Sukkar said that each state government was responsible for its own public sector workers, including local government employees.
“I would therefore encourage Ms Ryan to focus her energy on convincing her Labor colleagues in the state government to support their employees at Wyndham Leisure Services,” he said.
A state government spokesperson said: “We’re working with councils on the implications coronavirus is having on their operations including their staff, elections, and their compliance with the [Fair Work] Act.”
