By Adam Coleman
Privately-owned media and entertainment company, Ettamogah Entertainment, has temporarily laid-off 65 per cent of its workforce, according to a source.
The Melbourne-based company, which produces animation for broadcast, feature film and digital media, employed around 70 staff predominantly on rolling contracts, according to the source.
“People are going up to management and saying ‘it is my last day today according to the contract, should I come in on Monday?’ That kind of contract management is going on."
Another source said staff have not been paid entitlements and have been asked to wait two weeks, at which time the company will give them another update.
A spokesperson for Ettamogah Entertainment said “staff have not been laid off” yesterday. The company said it was preparing an official statement to release which would correct misinformation.
The Ettamogah website says the company’s "recruitment strategy ensures a considerable depth of management and production team experience is always on hand".
It comes as the post-production sector has been under increasing pressure due to low levels of production amid a sharp economic downturn. Several companies have either closed or laid off workers.
In 2006-07, post, digital and special effects businesses employed a much higher proportion of permanent full-time employees than the rest of the industry (55.4 per cent compared to 31.9 per cent), according to the latest Screen Australia data.