Night shift planned at F&P plant

The need to stockpile Dish-Drawer units for Fisher and Paykel Appliances' planned manufacturing move to Mexico has prompted the introduction of a night shift beginning at the plant within a fortnight.

Up to 430 jobs will be lost because of the move.

Up to 100 staff will finish on December 23 and the balance on March 31 next year, leaving about 90 design and engineering staff at the plant, which at times has employed up to 700 staff seasonally during the past 22 years.

F&P has cited Asian imports, global competition, skyrocketing raw material costs, the strength of the New Zealand dollar and rising interest rates as having forced its hand to move offshore.

At present, F&P is maintaining that Mosgiel staff, who were told of the closure in mid-April, do not get redundancy if they leave before the closure dates.

That has been a sticking point with the Engineering, Printing and Manufacturing Union (EPMU) since the closure announcement.

However, the parties are understood to still be negotiating on the potential for easing the requirements.

Fewer than 10 people had left since the closure was announced, without redundancy payments.

F&P vice-president of investor relations Paul Brockett said negotiations with the union were still under way but there was "a lot of water to go under the bridge" before an agreement could be struck on workers leaving early.

EPMU organiser Mike Kirwood said, "not surprisingly", morale was low at the plant.

He was circumspect about commenting on the progress of negotiations, but said the leaving-early issue was still being negotiated.

Mr Brockett confirmed a night shift was starting within about a fortnight so the company could begin stockpiling DishDrawer units to see the whiteware manufacturer through its relocation period to Mexico.

He was unable to confirm final arrangements, but understood existing staff might be asked to work a night shift.

"As there is the relocation of some plant to Mexico, there is a loss of production capacity.

We'll replace that by making more during a night shift," he said when contacted.

About 1000 F&P jobs were lost in April, with the closure of plants in California and Cleveland, Ohio, and one in Brisbane.

That followed the loss of 500 mainly Auckland staff during the previous two years as aspects of manufacturing were relocated to Thailand, Italy, the United States and Mexico.

 

Add a Comment