Union slams F&P over factory closure

The Engineering, Printing and Manufacturing Union has hit out at Fisher & Paykel Appliances saying it was not properly consulted about the whiteware maker's plans to close its Dunedin factory.

In a statement this afternoon, EPMU national secretary Andrew Little said F&P was closing the Mosgiel, Dunedin factory simply because it wanted cheap labour. The EPMU represents about 370 workers at the Dunedin plant.

Contrary to F&P's statements, Little said the EPMU was not properly consulted prior to this morning's announcement, which will cost 430 jobs. The union would only now start a consultation process, which was contained in a collective employment agreement.

Little said F&P had both lost sight of its Kiwi origins and lost its heart and soul. Although most exporting manufacturers were struggling with the high New Zealand dollar, he expected companies as big as F&P to work hard to keep local jobs.

"When Fisher & Paykel talks about compliance costs it really means the cost of providing decent standards to staff such as proper health and safety and fair wages, all of which are core Kiwi values " Little said. "But by making this move it is ensuring its products no longer represent these values."

The EPMU had not been "properly" consulted on the decision.

"I was told about the impending decision of the board and when I asked what could be done to keep the work here I received no answer," said Little.

The purpose of consultation now was to investigate all relevant information to see if the decision could be challenged and make sure staff were treated properly through the redundancy process.

The EPMU would also look to the international trade union movement for information and advice about conditions in Mexico, where F&P is opening a new factory, and measure conditions there against conditions here.

Little also hit out at F&P citing the free trade deal with China among its reasons for closing the Dunedin factory.

"The Free Trade Agreement with China guarantees the current level of tariffs for the next four years, whereas manufactured goods imported from other countries face the possible removal of those tariffs over the next year or two," Little said.