‘Thousands’ to be laid off

Press, 9 January 1986, Page 4

‘Thousands’ to be laid off

PA Auckland Dozens of companies throughout New Zealand are to lay off thousands of employees within two months, reports the “New Zealand Herald.”

The “Herald” quotes industrial sources as saying that at least 40 firms were poised to trim staff. The sources, which said that the lay-off would result from the pressure of rising costs, interest rates and

wage increases, added that many of the companies had made the decision before Christmas. It was believed many of the workers had yet to learn of the cuts. “The lay-offs would run into thousands,” one source said yesterday. “Generally, the redundancies will come from small to medium firms, mainly in the manufacturing and agri-cultural-related areas. “They are in addition to

what has already occurred. Most will be announced within the next two months.” The Employers’ Federation is compiling a list of companies about to lay off workers. The federation’s director of communications, Mr Alan Emerson, said research indicated that there would be a fraction of the job opportunities this year that there were last year.

“We have had companies seeking redundancy agreements, and that has not been done for 18 months.” Mr Emerson said that high wage settlements were largely responsible for the situation.

“Last year it was 6.5 per cent. This year it is 15.5 per cent. That is going to translate directly into employment, and it is going to start with non-replacement of staff and redundancy.”