A fresh round of redundancies is feared at one of Oamaru's largest employers, Summit Wool Spinners, after the company announced plans to cut production following a downturn in orders.
The company's 250 employees had been working reduced hours since Christmas, but the reduction had failed to generate sufficient savings to offset a drop in demand, Summit production manager Phillip Howe said in a statement yesterday.
That meant the company was "reviewing all options" and would consult employees' representatives over the next few weeks, before announcing further details, he said.
News of the move came four years after the company last announced restructuring plans, which led to 60 staff taking voluntary redundancy, reduced shifts and the introduction of the Government's nine-day fortnight scheme at the plant.
Activity has since picked up, but one employee - who declined to be named - last night told the Otago Daily Times there were now fresh concerns about the possibility of job losses.
"I think they are talking about restructuring. We've had that plenty of times before.
"You'd have to be silly ... to think that there wouldn't be redundancies, because there'd be too many workers."
Staff had been given few details, meaning options were not yet clear, but union meetings were planned next week to discuss the situation, the worker said.
When contacted last night, Mr Howe would not elaborate on the options to be considered by the company, except to say closure was not an option.
"I'd rule that out."
Summit Wool Spinners is New Zealand's largest independent spinner, supplying carpet and rug yarn to domestic and international markets.
The woollen mill was started in 1881 by local farmers and businessmen, and sold by Alliance Textiles to Summit Wool Spinners, owned by Sumitomo Corporation, in 1992.
Mr Howe's statement said the company had been facing reduced orders "for some time", and blamed high wool prices and a high New Zealand dollar against the US dollar for making the market "increasingly difficult".
Waitaki Mayor Alex Familton said last night he was talking informally to the company's management about their situation.
The company was "very important" to Oamaru as one of the town's largest employers, but he was confident it remained a "viable and vital company".
"I do have confidence in the management in the way they've been taking great care with the staff and the company in pretty demanding times."
