Closing of factory shocks Hokitika: 43 to lose jobs

Press, 22 July 1980, Page 1

Closing of factory shocks Hokitika: 43 to lose jobs

Greymouth reporter

Forty-three people, mainly women, will lose their jobs with the planned closing of the garment factory of Westland Textiles, Ltd, a subsidiary of Lane Walker Rudkin, Ltd, at Hokitika.

The factory, which produces mainly, women’s underwear and some men’s, has been in Hokitika since 1947. The annual payroll is believed to be worth $300,000 to the Hokitika community. The manager of the company (Mr A. D. Wells) said last evening that union officials had been in Hokitika and a redundancy agreement was being drawn up. He expected the closing would take eight to 10 weeks to complete. Two weeks notice would be given-to about, eight of the staff today. Mr Wells, who has been with the company for 30 years, the last 26 as manager, -.said- that he employed two generations of some families. ‘

“We started with young women who later left to raise families and then returned to work to be followed later by -their daughters,” Mr Wells said. The closing was the result of the downturn in the economy of the country. “There, is not; much we can do about - that here,” Mr Wells said. Among the first.' Mr Wells informed was the Mayor of Hokjtika (Mr W. A.. Reynolds), who said last evening that he was “very sorrowful.” : “It is a big blow for the town as there are no other employers of such a size employing female labour, with the exception of Westland and Seaview

Hospitals. Some may find jobs in other employment but for quite a number it may be a hard search in a small town,” Mr Reynolds said. '

The workers’ loss of pay would mean a lot to the ' town, Mr Reynolds said. 1 • “We have had a few setbacks recently and although I was looking to the. future with optimism I am now not sure. The town has heavy financial commitments with its new sewerage scheme, new stormwater drainage, and development reserves. Any reduction in ’ the . population will put the rates burden on fewer people.” . Mr Reynolds said that he hoped some other firm would buy the factory and keep it running or that some new industry would be introduced in the town to "take up the slack.” “It is a very worrying time for us all,” he said. The secretary of the Hokitika Businessmen’s Association (Mr J. R. White) said that the planned closing represented a challenge to the business community. He said he would ask for a special meeting, of the association to discuss the mattef. He believed there was an/ opportunity for the business community to “try 'to pick up the pieces” while trying to have a new manufacturing business started. “We must look at an

alternative industry even if it is smaller. There .must be people with management dr marketing experience in Mosgiel who could be encouraged to come to Hokitika to help. We will have to try to do something. “The female staffing at the Westland Hospital was purposely reduced. Where we had at one time 30 to 40 nurses in training there are none now. The closing of the factory is another blow to the town.” The possibility of Regional Development assistance to create new employment would have to be looked at, “otherwise we are just increasing the amount of unemployment in this country,” Mr White said. The publicity officer of Lane Walker Rudkin in Christchurch (Mr Max Whatman) said last evening that it was with great reluctance that it had been decided to close the Hokitika plant.

“We value our regional outlets greatly but there has been a fall-off of demand, and retail and forward orders just have not been coming in this year,” he said.

Lane Walker Rudkin had 13 plants in the South Island, but Mr Whatman sees the Hokitika closing as a “one-off situation,” and does not see it affecting , any of the other plants.