Companies proceeding with redundancies

Press, 17 December 1985, Page 18

Companies proceeding with redundancies

PA Auckland At least two companies will proceed with announced redundancies, in spite of any relief given by last week’s drop in the value of the New Zealand dollar. Officials at Aulsebrooks, Ltd, and Feltex, Ltd, said that they could not reverse the decisions on staff cuts announced recently. They were responding to a statement by the president of the Export Institute, Mr John Lister, who said some companies considering making staff redundant after Christmas, or firms which had announced redundancies, might change their minds because of the devaluation. “I am sure some of the exporters in real trouble, and there are many, who have been considering putting staff off will hold off,” Mr Lister said.

“The trouble is they have got to go back and get those export orders again. It is not just like turning the tap on but our guys are good.” Asked if some companies could hold off redundancies already announced, he said: “They have got to say, ‘how long till we get the business back, can we survive, that period?’ “I am sure they will do that exercise.”

However, for 110 Feltex carpet workers, there will be no reprieve. The general manager of Feltex carpets group division, Mr Murray Deal, said: “The redundancies we have announced have been for long-term restructuring reasons, not short-term exchange rate reasons.” Nor would the devaluation save the jobs of 70 Aulsebrooks biscuit workers.

The company said a “softening” of forward orders for exports was part of the reason for the redundancies when they were announced last month.

However, the managing director, Mr Paul Bresnahan, said at the week-end: “The major reason was internal production-efficien-cies achieved through

millions of dollars of new plant and people’s skills being substantially im- . proved. “We took on 150 workers last year and made only 70 redundant and are still carrying a surplus because we do not want to turn - round in the new year and advertise for people,” said Mr Bresnahan.