LWR axes 60 staff in Christchurch

BREAKING NEWS: LWR International has followed through with plans to lay off 60 staff in Christchurch.

The textile manufacturer has picked Otara rather than Sydenham as its favoured textile site, and will lay the staff - some of whom have been with the company for 40 years - off in stages.

Chief executive Malcolm Walkinshaw said the decision followed staff and union consultation on a proposal launched last week and would result in 60 Christchurch employees being laid off.

Walkinshaw said that while he deeply regretted the redundancies, consolidating textile manufacture onto one site in Auckland was essential to the company retaining a sustainable manufacturing base in New Zealand. 

"We simply couldn't afford to operate duplicate textile plants in both locations.  In the end,  we chose Auckland because of that site's greater throughput, its space for future expansion, its lower relocation and operating costs, its reduced capital needs, and its established three-shift roster requiring minimal additional staffing", he said.

"Reducing costs by rationalising textile manufacturing onto one site was a key element in the decision", Walkinshaw said.

Unions are also worried that the latest proposed staff cuts are just the tip of an iceberg amid fears manufacturers throughout New Zealand will take the brunt of about 40,000 job losses forecast over the next year.

Other Christchurch stalwarts, including G. L. Bowron, Skellerup, Dynamic Controls, Click Clack, Tip Top and Feltex, have cut staff in the past two years.

Some of the 60 staff had been with the company for up to 40 years.
LWR International, which traces its Christchurch origins to the 1880s, employs more than 1000 staff in centres including Timaru, Greytown, Levin, Pahiatua, Melbourne and Brisbane.

LWR employs about 300 staff in Christchurch, including the proposed 60 layoffs.

However, the company was committed to keeping the three Christchurch divisions - garment manufacturing, hosiery and underwear and team and sportswear - in the south.

Consolidation in the textile production area had been expected when LWR Manufacturing took over Auckland fashion and garment firm Pod and 280 staff in September 2007 to form the larger company.

Walkinshaw said the company would be laying off the Christchurch textile workforce in stages as the plant and equipment was progressively relocated to Auckland.

The company had provided a series of outplacement workshops and counselling services were available from today for affected staff and were being held in conjunction with job search briefings from Work & Income advisers.
"We have loyal and committed staff in Christchurch, some who have been with the company many years, so we intend to do the right thing", Walkinshaw said.

- © Fairfax NZ News

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Dave   #5   05:26 pm Jan 28 2009

This is a reflection on the labour market being controlled artificially by unions and the previous government. Perhaps the union has brough about the demise of these jobs because of inflexibilty. LWR should be moving their whole operation to Christchurch where there isn't the infrastructural problems of Auckland but for the labour market controls that prevent them.

ruseell   #4   05:26 pm Jan 28 2009

the public of nz wanted cheap goods but at what cost.this is only the beginning. buy nz products to at least starve it off before china takes it all.

Rodd007   #3   05:26 pm Jan 28 2009

At least these unfortunate people will hopefully be covered by a Government that will cover some funding in redundacy. If we had proper growth over the last nine years this may not be happening!

Stuart   #2   05:26 pm Jan 28 2009

great time to introduce mandatory private health insurance, eh National?

bruce   #1   05:26 pm Jan 28 2009

Based on the reasons given by Walkinshaw is there a future for any city outside Auckland?

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