ABCGunns workers have protested in northern Tasmania amid...

ABC

Gunns workers have protested in northern Tasmania amid concerns that they will not receive their entitlements.

The company announced yesterday that it had entered into voluntary administration after losing the support of its bankers.

The forestry union has been told there may not be enough money to payout workers.

About 50 workers are due to be made redundant from Gunns' hardwood processing site in Launceston on Friday.

The site's closure was announced before the company's move into administration.

Workers met the receivers today at the company's headquarters.


The forestry union says it has been told there was no guarantee there would be enough money for workers, despite previous assurances.

Workers have marched to the ANZ bank in the city's centre, waving placards and chanting.

The company's banks have refused to extend loans worth more than $500 million, forcing Gunns to enter administration.


The receivers say the sawmills at Mount Gambier in South Australia and Bell Bay in Tasmania will continue to operate as normal.

But many people who are on contracts with Gunns have not been given assurances about continued work.

Kevin McCullough operates a small business which does in-field chipping, turning trees into woodchips where they fall before they are taken to port.

He has been sub-contracting for a business that works directly for Gunns in south-west Victoria.

He was told late on Monday night not to go to work until further notice.

Mr McCulloch says the business he works for is owed a substantial amount of money.

"The wood's still growing, the demand is still there, it's just a matter of if somebody can pick up where Gunns have left off and keep moving as soon as possible," he said.

"We can only wait so long. I'm seeking if there's any other alternatives in this area.

"There are other companies that are still working but their contractor capacity is basically full