In the bombshell announcement delivered last Thursday, with far-reaching economic effects for Dunedin's overall economy, 430 Appliances' staff were told they will be made redundant at the Mosgiel plant during the coming year, leaving 90 in project design.
However, with the large plant gutted of 430 production staff and the land and building going up for sale in the future, former site manager of 10 years Chris Staynes doubts the 90 design and engineering staff will be retained, despite Appliances' assurances.
Mr Gilks, a prominent Dunedin businessman for several decades and chairman of Port Otago, has been on Appliances' board for 22 years and its deputy chairman for the past decade.
He said the decision to close Mosgiel in favour of offshore manufacturing was one of several options considered by the board.
‘‘My feelings showed; it was not a decision taken easily or lightly. I feel emotional and quite shattered by it. The long and short of it is that the world has changed and we can't compete against low-labour cost economies,'' he said.
The strength of the New Zealand dollar, high interest rates and the freight component for exporters in general remained ‘‘very difficult'' for manufacturers.
‘‘It was a central decision for the company. Clearly it had to be done,'' Mr Gilks said.
Of 1600 people expected to be left working for Appliances in New Zealand in May next year, following more than 1500 redundancies in New Zealand, Australia and the United States during the past two years, 300 will be design engineers, including the 90 at Mosgiel.
Mr Gilks was adamant the 90 design staff would remain at Mosgiel, because of their niche, unique and specialised skills.
‘‘Chris Staynes is not right in that. There's no suggestion we would want to change that,'' Mr Gilks said.
