Black day for jobs

It has been another black day in what has been a black week for the working New Zealander.

Over 500 job losses have now been announced since the Government held its Job Summit last Friday to tackle keeping people in work.

Earlier today Wellsford's largest employer, Irwin Industrial Tools, said it was cutting 105 of the 162 jobs at its plant. And now the Nelson region has been hit by its second jobs shock within a week with announcement by Nelson Pine Industries that it is intending to lay off 60 staff.

The news comes as the area continues to reel from the announcement on Monday by Sealord, one of the region's largest employers, that it is shedding 180 staff.

The Wellsford job losses will be a blow for the small rural township, with a population of just over 4200, 82km north of Auckland on State Highway 1. "This decision has been a difficult one to make, and in no way reflects on the hard work and dedication of our workforce in New Zealand," the US-based company said.

Nelson Pine, owned by Japan's Sumitomo Group, is one of the largest single-site medium density fibreboard producers in the world. The plant, located near the town of Richmond, has been operating since 1986 and its production size has been increased twice during that time. It currently employs 265.

Staff were told of the decision today.

Managing director Murray Sturgeon said it was a "black day" for the company.

The country has seen a wave of job cuts announced this week as companies attempt to come to grips with the rapidly slowing global economy.

The latest wave of redundancies is likely to see the unemployment rate climb much higher than the current 4.6 per cent when the next official figures are released.

Economists are estimating the unemployment rate is likely to be at least 6 per cent by the end of the year, although some people are estimating the figure could be as high as 8 per cent.

Other redundancies announced this week have been 98 jobs gone at Pacific Brands, and 70 at GE Money. Additional to the 513 jobs is the fact that the Tertiary Education Commission has suggested trimming another 70 fulltime jobs.

- © Fairfax NZ News