Update on Pacific Brands manufacturing in NZ

MEDIA STATEMENT
Update on Pacific Brands manufacturing in New Zealand

For Immediate Release, Thursday 30th July 2009

Statement from Ross Taylor, Group General Manager, Underwear and Hosiery

In March, Pacific Brands announced its intention to sell or close its thermals operation in Palmerston North and its sock factory in Christchurch. This was part of a broader strategy for the company to exit the majority of its clothing manufacturing.

Last month we announced that despite our best efforts, a sale had not been able to be achieved for Palmerston North, and that we had secured a buyer of the raw materials and some machinery to enable the ongoing manufacture of the contracts socks business in Christchurch. As a result, the Palmerston North site will close today, Thursday the 30th July and the Christchurch Sock Factory will close tomorrow, Friday 31st July.

Over the past months, Pacific Brands has worked extensively with the staff to assist them in preparing for their future.

In addition, Pacific Brands has developed, in conjunction with the union, an extensive retraining program available to all workers being made redundant.

The program involves funding provided by Pacific Brands which is available for retraining in areas likely to result in employment.

Of the 46 workers on each site, already 70% have chosen to enrol in courses fully funded by Pacific Brands, in areas such as Licences for Forklifts or Heavy Vehicles, Small Business Courses, IT learning courses, Welding courses, Event Management and First Aid Certification. We will continue to enrol staff within courses that will best position them to secure employment once they leave Pacific Brands.

In addition to the retraining, the company has also provided external outplacement advice, with a specialist organisation providing assistance in preparation of CV’s, interview skills, career guidance, and other related areas.

Naturally, Pacific Brands will be paying all entitlements in full as per its contractual obligations.

This has been an extremely difficult period for all of our people and we will continue to work with them to ensure they are provided with the best possible support.

I am particularly proud of our entire workforce at Palmerston North and Christchurch. I’d like to publicly thank them for their support, their commitment to the business, and their efforts, especially over the past four months. I wish them all the very best for the future.

ENDS

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