Twenty-two people were told yesterday they would lose their
jobs as one Otago business prepared to close its doors and
another was forced to prune its workforce because of
declining orders.
The owners of Central Otago Lumber, in Luggate, told workers
yesterday that the plant was closing, with the loss of 12
jobs, while declining sales of beef patties in Japan and
Australia forced the loss of six permanent and four casual
jobs at the Anzco-owned Green Island meat processing plant.
Central Otago Lumber manager Gerard Haggart said in an
interview a slowdown in building activity from Ashburton to
Invercargill meant the firm had fewer forward orders and
sales.
Most staff would finish work on May 15, with a skeleton
workforce staying on to clear the stock.
The plant was owned by the Skeggs family, of Dunedin, and Les
Wilson, and a staff member who asked to remain anonymous said
workers were still trying to negotiate redundancy.
The Otago-Southland president of the New Zealand Meat Workers
Union, Daryl Carran, said the Anzco plant was still operating
two shifts a day and employing about 41 workers after
yesterday's redundancies.
He said news of the layoffs was surprising given that food
producers appeared to have had some immunity from the
economic downturn as people chose to eat at home more often
and eat cheaper products.
The company told him forward sales were weak and it had to
act, and options such as a nine-day fortnight would not give
it the buffer it needed.
