HumanWare staff told of layoffs via video link

Last updated 01:32 28/01/2008

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Christchurch has lost yet another manufacturer after HumanWare, a maker of hi-tech aids for the blind, laid off nearly 60 staff.

Staff were told the news late last week via a video link with chief executive Giles Pepin, who was in Canada.

An employee said the company, created by Christchurch innovator Russell Smith, would have nothing more than a branch office in Christchurch. About six staff would remain, including two sales staff and four employees involved in research and development.

It was understood all the manufacturing was being outsourced and the research and development was going to Canada.

"I think some people were angry, others were resigned, we've been through two weeks of consultation but we knew from the beginning the decision had been made," the employee said.

Management would not talk to reporters and instead passed on the Canadian contact details of Ivan Lagace, marketing vice-president, who did not return calls.

At least two of HumanWare's vice-presidents were thought to be on site, after Mr Pepin said Richard Nadeau, operations vice-president, and Pierre Hamel, research and development vice-president, were staying till the end of this month to reorganise projects.

The redundancies add to announcements in the past year by Christchurch firms, including GPC Electronics, Click-Clack and Skellerup, of the axing of more than 500 jobs in the next year.

Dr Smith built PulseData, which later became HumanWare, into a high-profile multimillion-dollar company with 230 staff and sales worldwide.

In August 2005, Dr Smith, 60, died in a light plane crash off the North Canterbury coast with his wife, Marian D'Eve, 57. Since then the company has been through almost constant change with new overseas owners and managers.

Jolimont Capital, an Australian private-equity fund, bought 70 per cent of HumanWare in May last year and said no changes would be made. Just four months later, in September, eight staff were laid off and in November it was announced that the company was shifting its headquarters to North America.

"It's amazing how fast the turnaround was. One minute we received a pat on the back from Helen Clark and the next minute we're given slips of paper telling us when we finish. In the space of 18 months we've gone from hero to zero. Very quickly," the employee said. Staff were told HumanWare would be out of its existing building in Hillsborough within six months.

About 20 people were paid out last week and would not be returning to work today. Others in manufacturing had been given dates.

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It is thought the company was trying to find a local manufacturer that could take on its manufacturing for a short period.

 

- © Fairfax NZ News

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