Millers to close mill: 80 out of work

Press, 7 August 1976, Page 1

Millers to close mill: 80 out of work

Staff at Millers Worsted Mills, Aranui, were told at 4 p.m. yesterday that the company will begin progressively closing the factory immediately. It is expected that the mill will finally cease production at the end of December. Redundancy agreements will be negotiated for the 80 male and female workers, most of whom belong to the Woollen Workers Union. Announcing the closing, the governing director of the company (Mr R. B. Miller) said that the mill had not been profitable over the last five years. The mill has been running since 1951. Mr Miller said that the fall in profits was because of the decline in the market for worsted fabrics, and the strong competition from cheaper synthetics. “Re-equipping the mill with new machinery for synthetic production would require more than S2M, and should this step be taken it is questionable

whether the local product could compete with fabric from countries with low labour costs.” He said the company would negotiate with the unions for a redundancy agreement. Initially 15 to 20 people would be dismissed. The company would work closely with the Labour Department to find alternative employment. Other employers in the industry would be approached. Union representatives met Mr Miller and a representative of the Canterbury Employers Association yesterday for preliminary talks. They will meet again on Monday to start discussing redundancy agreements. Mr Miller said that although Millers Worsted Mills, Ltd, was part of the Miller Group of companies, the closing of the mill would not affect manufacturing at the Wairakei Road factory, or the wholesale and retail activities of the group.