Fast fall 'from hero to zero'

Christchurch has lost another manufacturer as nearly 60 HumanWare staff lose their jobs.

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

HumanWare, created by Christchurch innovator Dr Russell Smith, makes hi-tech aids for the blind.

An employee said yesterday the company would have nothing more than a branch office in Christchurch.

He said 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 shifting to Canada.

"I think some people were angry," the employee said.

"Others were resigned," she added.

"We've been through two weeks of consultation but we knew from the beginning the decision had been made."

Management would not talk to The Press yesterday and instead passed on the Canadian contact details of Ivan Lagace, the marketing vice-president.

Lagace did not return calls.

At least two of HumanWare's vice-presidents were thought to be on site.

Pepin told The Press last week that the two, Richard Nadeau, operations vice-president, and Pierre Hamel, research and development vice-president, were staying until the end of the month to reorganise projects.

The redundancies added to announcements in the past year by a handful of local firms, including GPC Electronics, Click-Clack and Skellerup, of the axing of more than 500 jobs over the next year.

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

In August 2005 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.

When Jolimont Capital, an Australian private-equity fund, bought 70 per cent of HumanWare last May it said no changes would be made.

Just four months later, eight staff were laid off, and in November, it was announced the company was shifting its headquarters to North America.

"It's amazing how fast the turnaround was," the employee said.

"One minute we received a pat on the back from (Prime Minister) 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."

He said staff were told HumanWare would be out of its existing building in Hillsborough within six months.

About 20 people were paid out yesterday and would not be returning to work on Monday. Others in manufacturing had been given departure dates.

It was thought the company was attempting to find a local manufacturer which could take on its manufacturing for a short period.

- © Fairfax NZ News