Friday 19th July 2013 |
Text too small? |
Godfrey Hirst, the biggest carpet maker in Australia and New Zealand, plans to cut at least 50 of the 85 jobs at its Dannevirke plant.
The company told staff it planned to cut the jobs by the end of September, alongside a proposal for remaining staff to move to shift work with reduced hours, according to First Union, which represents the workers. The cutbacks at the factory, formerly owned by Feltex, will probably spell the end of its wool spinning operation although it may continue operating its dyehouse, the union said.
Demand for woollen carpets has waned as a result of competition from cheaper synthetic alternatives. Godfrey Hirst has closed its earthquake-damaged Christchurch mill and cut back staff at the unprofitable Summit Wool Spinners plant in Oamaru that it bought in January. After taking over Feltex, it closed a Christchurch carpet plant, a Foxton carpet plant and a Fielding spinning plant.
Rival Cavalier Corp. shut a yarn spinning plant in Onehunga last year because of overcapacity in the sector, with the loss of about 85 jobs.
Godfrey Hirst maintains a spinning plant in Lower Hutt and a carpet mill in Wiri, Auckland.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes