Redundancy wrangle threatens $2M order

Press, 15 February 1982, Page 2

Redundancy wrangle threatens $2M order

PA Hamilton A wrangle over redundancy payments at New Zealand Aerospace Industries, Ltd, could threaten the completion of an aircraft export order worth almost $2 -million.

The firm’s receiver has announced that staff lay-offs will begin this week.

But the unions involved issued a joint statement which said they sought guarantees of full redundancy payments before the completion of an assembly order for the Royal Australian Air Force. A clerical workers’ industrial officer, Mr ; Peter Murphy, said legislation would be sought to protect

redundancy agreements covering long-serving employees.

The receiver, Mr John Gaukrodger. said there had been no development in a move by James Aviation, which holds 32 per cent of Aerospace’s shares, to buy the company. Mr Gaukrodger said that the first redundancies would be announced tomorrow and more were likely to come after the completion of an assembly order of Airtrainer aircraft in May.

“I am not committing myself on numbers.” he said. Mr Gaukrodger said the company's aircraft assembly work would continue only until the completion of the

assembly order of Airtrainer aircraft in May. Seven planes under construction are due to complete the 14-plane order. At a press conference after a meeting with representatives of the engineers’ and clerical workers’ unions, Mr Gaukrodger expressed “uncertainty” about the redundancy payments. Aerospace’s house agreement with the unions was an “uncertain" bond on which he would seek clarification from the employers’ association. Mr Gaukrodger said the house agreement could mean that redundancy payments ranked as unsecured creditors behind the company’s other creditors.