THE owners of SEM Fire and Rescue, Turnberry Funds Management, failed to address the workers today but broke their silence to The Courier tonight.Director Jim Hallam said the company had been negotiating with shareholders and bankers on Tuesday but were "unable to agree on a funding package.""The directors didn't have any choice but to stand down the staff," Mr Hallam said."Their employment has not been terminated but they have been stood down."Mr Hallam said the company was mindful of their obligations to their employees and the Ballarat community, but said there was little option."In terms of the lock-out, we were damned if we do and damned if we don't, in terms of how we handled it," he said."Whether people are allowed to get onto the premises or not is really a moot point."Workers at SEM started a picket-line this afternoon, as union officials began legal proceedings against the company's owners.The Australian Manufacturing Workers Union official Colin Muir told staff at a meeting that the union had started legal proceedings over what he believed was an illegal industrial action.In a twist, Mr Muir said the union went to serve a writ on the company's head office today, which is publicly listed as a Melbourne address — but it does not exist.This morning, more than a hundred Ballarat workers were left wondering if they still had a job after arriving to work to find padlocks on the gate.SEM Fire and Rescue Designs staff and management said they had no warning or indication of any decision to close down the plant, which specialises in the design and manufacture of emergency service vehicle.The company has supplied vehicles for the CFA, the NSW Rural Fire Service, the Metropolitan Fire Brigade and the South Australian Country Fire Service.Visiting Ballarat today on other matters, CFA fire services commissioner Craig Lapsley expressed his sorrow at the workers' plight.Mr Lapsley said the CFA had several trucks which were half-built inside the SEM premises and was unsure what would happen to them.SEM sales manager Mark Pontil told The Courier the company was performing strongly and couldn't see a reason why the owners decided to lock the gates this morning."We just won a contract yesterday with the NSW Rural Fire Service to supply 40 vehicles," Mr Pontil said."We've been winning contracts, not losing them."Finance coordinator Gavan Dowden said management and manufacturing staff were all in this together."Everyone's in the same position," Mr Dowden said."We had no idea - you would think (the owners) could exercise their ethical and moral obligations and notify the employees."AMWU delegate Fred Ladige said workers were stunned with the news."No one knows if they've got a job or not," Mr Ladige said."Everyone was completely shocked - there was absolutely no warning."In April 2008, SEM Fire and Rescue was acquired from the Skilled Group by a consortium arranged by Turnberry Funds Management. According to the company's website, the new shareholders "intend to invest additional capital in the business to expand its operations, provide greater employment opportunities in the Ballarat region and enhance vehicle manufacturing operations."Centrelink representatives were on site with the workers this afternoon to discuss their options.See The Courier tomorrow for full coverage on the lock-out.