Construction services company Aquaheat has announced there will be 30 redundancies in Wellington as a result of the downturn in construction work in the capital.
The redundancy proposal said the cuts would come from most areas of operations, and would bring staff numbers from 135 to 105 fulltime equivalent positions.
The company had cited a projected 13 per cent decline in non-residential construction work caused by increased insurance premiums, additional costs of earthquake strengthening and the effects of public sector cuts on the construction industry.
The Engineering, Printing and Manufacturing Union's national construction industry organiser Ron Angel said the redundancies were likely to add to the emerging "trades drain" to Australia.
"There are very few construction projects in the pipeline in Wellington, and with public sector spending drying up this is likely to continue for some time.
"The Wellington region is really starting to struggle. Cuts to public sector spending have hit local businesses hard, and it's inevitable that will be reflected in the construction industry."
The union would now go into consultation with the company, Mr Angel said.
"We are hopeful redundancies can be voluntary and that people affected can find work on the Christchurch rebuild, but the reality is that for many this will be seen as an opportunity to join the trades drain to Australia."
Union members at Aquaheat were eligible for redundancy compensation under their collective employment agreement.
Aquaheat's general manager Paul de Bernardo was not available for comment tonight (Tue).
Consultation on the redundancies will finish on October 19.
