Announcement not expected

Dave Such contemplates the implications after 17 years with the company. Photos by Gerard O'Brien.
Dave Such contemplates the implications after 17 years with the company. Photos by Gerard O'Brien.
Chris Chambers reacts to the announcement yesterday that Fisher and Paykel Appliances will close...
Chris Chambers reacts to the announcement yesterday that Fisher and Paykel Appliances will close its Mosgiel plant at Silverstream in April next year.
A group of workers reacts to an Otago Daily Times photographer.
A group of workers reacts to an Otago Daily Times photographer.

Hundreds of shocked workers walked away from Fisher and Paykel Appliances Mosgiel yesterday morning to contemplate their futures.

They were coming to terms with the surprise 10.30am announcement that 430 jobs would be phased out during the next 13 months.

Some were bitter that they had heard the news first in radio bulletins.

While many did not envisage long-term futures at the factory, they did not expect to be made redundant so soon and in as many numbers.

Cooktop worker Chris Chambers said Fisher and Paykel was always considered a family company but ‘‘certainly wasn't now''.

‘‘It's appalling. I really didn't think it would happen. Everyone is pretty gutted.

‘‘What is it going to do to the region, the economy?''

A cooling division staff member of 17 years, Dave Such, of Mosgiel, said Appliances was ‘‘obviously going for the cheap labour in Mexico and Thailand''.

He believed most staff, and the Engineering, Printing and Manufacturing Union, were unaware of the extent of changes being considered, having been told a month ago more product was required.

‘‘We were expecting some sort of downturn and going to something smaller [in terms of production]. There's some people crying in there and a couple are really losing it,'' he said.

Enamel worker Ross Connelly said everybody knew it was coming: ‘‘How can you expect them to pay us $20 [an hour] when they can pay people in Mexico $4?''

For him and his wife, the news might mean moving on.

‘‘We'll just pack up and go to Aussie.''

Appliances chief executive John Bongard said yesterday that, although the decision was based on the high exchange rate and high interest rates, with freight and labour costs of most concern, the problem at Mosgiel was ‘‘further exasperated'' by growing demand for the Dish-Drawer from its North American markets.

Mr Such said staff morale between now and the closure of the production plant in May would be low.

Staff would not look forward to working harder to maintain stock inventories and then disassembling manufacturing plant equipment for freighting to new factories overseas.

‘‘This is really bad news for Mosgiel, in every way you can think,'' Mr Such said.

Staff member Melissa Hannagan said while they knew the economy was not great, they did not expect things to happen quite so soon and quite as broadly.

‘‘It's pretty crappy. We're shocked.''

She and her partner worked at the factory, so it would mean quite an upheaval.

‘‘Possibly, there won't be a lot left here for us. There will be a lot of people looking for jobs at the same time.''

Janelle Houliston said she would be going home and thinking about the news.

Annette Butler, whose husband and daughter also work at the plant, said it was ‘‘pretty awful, devastating''.

‘‘It's a big change to take in. We'll just have to use the skills we have accumulated here elsewhere.''

For her, it might be the opportunity to retire but ‘‘it's the younger ones I feel sorry for''.

Work and Income Southern Regional director Sue Rissman said the focus would be on helping redundant workers find new employment and ensuring workers obtained financial assistance as soon as they were entitled to it, as well as providing job training and other services.

 

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