Rockhampton man Craig Digby let go by VAC Group weeks before Christmas

A Central Queensland worker has missed a house repayment for the first time in 20 years as he struggles to put food on the table for his family.

Craig Digby was made redundant in VAC Group administration.

Central Queensland man Craig Digby had to make the choice of buying groceries or making a house repayment last week.

It was the first house repayment he had missed in 20-plus years.

Mr Digby was one of the more than 200 employees who were made redundant in the VAC Group administration on December 5.

It is unlikely they will receive their owed pay and entitlements by the end of the year, if ever.

The VAC Group was placed into external voluntary administration on December 6, with Stephen Earel, Neil Cussen and Michael Hird of national business advisory firm Cor Cordis appointed.

The Group includes multiple companies; Beacos Pty Ltd, Hydro-Vac Recycling Resource Recovery, Staking U Asia Pacific Campus, Earth Radar Pavements and Utilities, Earth Spy, VAC-U-DIGGA, Soil Transfer and Rebirthed Earth.

The Yatala-based business was established in 2000 and has sites in Rockhampton (Gracemere), Gladstone, Sydney, Melbourne and Adelaide and employs 155 staff across multiple companies.

According to its website, the VAC Group operates the largest fleet of vacuum excavation suckers trucks in Australia and other underground asset location and mapping services for small business projects, civil and building works for government and major infrastructure projects.

Craig Digby was made redundant in VAC Group administration.

Mr Digby had been employed at the Gracemere site for about two years, leaving a similar company for a permanent job with VAC Group.

“We went to work Monday (December 5) like normal and by lunchtime, the boss rang up and said bring your trucks to the yard, don’t dump, don’t do anything, just come straight back to the yard,” he said.

All of the 11 staff at the Gracemere staff were called in the office and were told the company was going into administration and they were “most likely not getting paid”.

“We weren’t even getting paid for last week… I worked 56 hours plus eight hours on Sunday,” Mr Digby said.

The news came as a shock, even to the boss of the Gracemere site.

“It’s just not right, you’re the one out there earning the money for the company,” Mr Digby said.

“We can’t see how the company went bankrupt, the trucks were booked out every day, non-stop.

“Nobody was very happy about it, we all have families, house repayments, we have to put food on the table for the kids.”

It is understood staff at other sites also had a similar meeting.

A letter was given to the employees, advising them they were being made redundant, effective immediately.

The letter further states “claims against Vac Group for certain categories of employee entitlements, for the period prior to our appointment, may receive priority payment”.

The gates were closed on Tuesday morning (Dec 6) at Vac Group's Gracemere site.

Administrators are unable to confirm at this stage if there will be sufficient assets to meet employees wages and entitlements, the letter stated.

“If we see any money, it will be four to seven weeks and even longer with the Christmas and New Years period,” Mr Digby said.

Mr Digby worked out he is owed about $7,000 all up with unpaid hours worked, banked RDOs and leave.

“I don’t think we will see a cent,” he said.

It has left him in the lurch, especially with Christmas coming up.

“I was supposed to go on holidays on the 22nd… I’ve got a home loan, two boys 16 and 12, they both go to private school… My pay usually covers the home loan and play money… we have none of that,” he said.

“This is the first time in 20 years I have missed a house payment.

“We had a choice of missing the house repayment or eating.”

It’s not the first time this company has gone into administration.

VAC Group was rescued from an administration back in 2019, owing creditors more than $9 million at the time.

The first creditors meeting for this administration will be held virtually on December 14.

It is unknown how much money is owed at this stage, however it is understood the Australia Taxation Office and a London bank are the main creditors.

Editor’s note: An earlier version of this article included an image which depicted the logo of ‘All Hours Vac Truck’ on Mr Digby’s shirt. All Hours Vac Truck is in no way associated with the Vac Group and is operating as normal.