F&P Appliances Auckland workers return to 40-hour week as orders pick up

Wednesday 29th July 2009

Fisher & Paykel Appliances said workers at its Auckland refrigeration plant will return to a 40-hour week as orders pick up, having been the first recipients of the government’s Job Support Scheme subsidies aimed at saving jobs.

“Although all markets remain tough in terms of trading, the East Tamaki plant, coming into its traditional peak production season, has sufficient orders going forward to enable it to return to normal working hours.” Chief executive John Bongard said in a statement.

The government scheme was “pivotal in allowing us to keep our skilled assembly line workers employed through the recent slump.”

The appliances manufacturer was forced to take on a cornerstone shareholder and sell shares at a discount this year to bolster its balance sheet in the wake of a slump in demand and rising debt.

The shares sank to a record low 26 cents in March and have rebounded 227% since then. The stock fell 3.4% to 85 cents today and is still down 41% in the past 12 months.

Fisher and Paykel joined the Job Support Scheme in early April and has received just over $123,000 of government funding. Under the agreement, 350 staff worked a 35 hour week, supplemented with an additional 3.5 hours of pay made up of both government and the company’s contribution.

Workers also took 1.5 hours a week paid leave. Workers voted in support of a move back to a 40 hour week and the company thanked the Engineering, Printing and Manufacturers Union for its support “as we worked through our difficulties.

”The scheme helped save 60 jobs," the company said today.

F&P Appliances is rated ‘outperform’ based on the consensus of six analyst recommendations compiled by Reuters.

Businesswire.co.nz

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