Shock lay-offs after fire insurance gaffe

Owner of a Hastings company destroyed by fire have been forced to lay off 44 staff after finding their insurance policy did not cover wages for loss of business.

Hawk Packaging management told workers at a meeting this week they would lose their jobs.

There was a chance they would be re-employed when the company re-opened at a new site in July, but no guarantees.

The building in Tomoana Rd was burned to the ground last Tuesday night. The blaze covered Hastings in ash and threatened nearby properties.

The lay-offs came as a shock to staff. The day after the fire, owner and managing director Tim Combs told The Dominion Post the company was insured and none of the 55 staff would lose their jobs.

People development manager Kelly Fenwick said the company's business interruption insurance would not pay wages if people were not working.

"We thought we would be covered to retain our full workforce. In reality, we weren't."

Staff were paid four weeks in compensation and will have "first dibs" on jobs in the new plant.

"They are key staff with key information. We'd like to retain them," Mrs Fenwick said.

However, she was realistic that many workers would have secured other jobs before Hawk Packaging could offer them another position.

Company customers, such as Heinz Watties, had come forward with offers of seasonal work for those let go.

Machine operator Collins Manswell was using the redundancy to "take a step back and think about life and what direction to go in".

He had learnt to save well after he was made redundant in his previous job as a cabinet maker.

"It's the times we're living in. No job is safe any more."

He was not "hedging his bets" on work at the new plant. He had been offered two jobs since the announcement and would likely accept one of them. However, he was sad to leave Hawk Packaging. "I worked my way up and was looking towards a better future."

Mr Manswell met workmates in Hastings last night to spend the remaining social club money and enjoy a last drink together.

Police said investigations were continuing into the cause of the "complex" blaze.

- © Fairfax NZ News