Glass plant closing ends 280 jobs

Press, 12 September 1987, Page 1

Glass plant closing ends 280 jobs

By

KAY FORRESTER

and CHRISTOPHER MOORE

A total of 280 jobs will be lost with the closing of the A.C.I. New Zealand, Ltd, Crown Crystal Glass manufacturing plant at Hornby.

The plant, established in 1951 and one of Christchurch’s biggest employers, will close on October 23, resulting in 280 redundancies. The staff were told of the decision yesterday afternoon. "A changed environment since 1984 for export-orientated manufacturing has severely affected the viability of the plant,” said the general manager, Mr Dudley Jamieson, in a statement after the meeting. “Because of the phasing out of export incentives, the strength of the New Zealand dollar and high domestic costs, the company has experienced a serious decline in export volumes and profitability. Locally there is increasing competition from imports, particularly drinkware,” he said. The company had tried to improve productivity. In April last year, it closed one of four machine lines to reduce costs. “It was hoped that these moves would ensure the viability of the Christchurch manufacturing operations. However, improved trading conditions have not materialised.” With the closing of the Hornby plant, most South Island requirements for glass bottles would be met by A.C.I/S New Zealand Glass Manufacturers’ plant at Penrose, Auckland. Ironically, the Hornby plant was built in response to a Government policy of encouraging import substitution for manufactured goods. Crown Crystal later became a major exporter, send-

ing up to 50 per cent of its output to the Australian, American and Pacific markets. According to Mr Jamieson, annual exports had been "in the order” of $lO million with a 95 per cent local content. The company’s warehouse and showroom at Hornby will stay open as a distribution centre, employing about 16 people. The recycling of waste glass will also continue, the glass being shipped to the company’s Auckland plant. The redundant staff would receive severance pay “in line with the company’s redundancy agreement with the unions,” Mr Jamieson said.

The New Zealand Engineers’ Union, with 200 members, is the main union at the Hornby plant. The regional branch secretary, Mr Bob Todd, yesterday described the shutdown as "another nail in the coffin of manufacturing industry in Canterbury.” The union was informed of the decision yesterday afternoon. It will now talk with the company about the redundancy payments for employees. It will also invite the Minister of Trade and Industry, Mr Caygill, to meet staff at the plant next week. “There will not be much opportunity for many people to find employment locally,” Mr Todd said. “The unions have already told the Manufacturers’ Federation that it is time for a joint approach to the Government to call for a stabilisation of the manu-

factoring industries.” He also criticised A.C.I. New Zealand for importing glassware . into New Zealand. “You should remember that the same company that has closed the Hornby plant is also importing French glassware of similar quality to that made in New Zealand.” But a company spokesman, Mr David Lawson, rejected that criticism. “The company has not imported any glassware that it could make itself. The French and Italian glass is highquality stemware. The company does not have the equipment to make this in New Zealand.” Mr Caygill was last evening studying the company’s announcement. “The only comment I can make at this stage is one of disappointment,” he said. That was especially so as the company would continue in Auckland. The Government member of Parliament for Yaldhurst, Mrs Margaret Austin, was "dismayed and upset” by the closing and redundancies. “I can imagine how those people who have lost their jobs must feel, especially in light of the local job market. I will contact the company and the plant management to see what steps will be taken to assist the staff.” “I’m reacting badly to the news. I find it astonishing. My main question now is why the plant is not competitive.”