Talks continue at Summit Wool Spinners

23 March 2009

News release

Talks continue at Summit Wool Spinners

Early indications are that up to 80 job redundancies could be involved at Oamaru’s Summit Wool Spinners Ltd, as the company works through the consultation process with its 315 employees after announcing a substantial downtown in local and overseas orders.

Last Friday, the company met offsite with its 315 employees to brief them on the company’s situation, to present restructuring options for discussion and to ask employees for feedback and ideas.

Today, senior managers met onsite with members of the two unions and their representatives, and also with individuals who are not union members, to continue the discussions. Further meetings are scheduled for the rest of the week and after considering the feedback, the company is now hoping to announce its restructuring decisions by late next week.

“We’re encouraging voluntary redundancies by offering more than is provided in employment contracts and this has met with a good response,” said Mr Hammond-Tooke.

“Although nothing can be confirmed at this stage, employees are aware that up to 80 redundancies could be involved depending on the shift and shift hours configuration, along with reductions in wages in some cases” said Mr Hammond-Tooke.

He confirmed that the Government’s nine-day fortnight was one of the proposals in the mix.

While the main proposals centred around changes to shifts and shift hours, ideas were also being sought on possible cost-savings.

“We all recognise this is a very upsetting and uncertain time for employees and their families and we’re working as quickly as employment law and its processes permit to reach a resolution and some certainty,” said Mr Hammond-Tooke.

Both unions were being constructive as they worked through the proposals with their members.

In the meantime, the company has agreed, at the unions’ request, to set up a resource centre at the Oamaru plant to coordinate a range of company and Government support services, including counselling being offered all employees. Also available will be budgeting advice, help with preparing CVs and obtaining references and assistance in dealing with banks.

“The company is determined to retain enough people with the skills that are needed to take advantage of an upturn in orders. Making any job redundant really goes against the grain,” said Mr Hammond-Tooke.

Last November shifts at the plant were reduced from 12 hours to 10 hours in response to downturn in orders.

Summit Wool Spinners has been owned since 1992 by the textile division of Sumitomo Corporation of Japan.

The company is New Zealand’s largest independent wool spinner, supplying yarn to carpet and rug-makers in New Zealand, Australia, South East Asia and the USA.

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