An Oamaru wool spinning company struggling with a downturn in demand has given 200 workers a paid eight-day break in a move applauded by the National Distribution Union.
Mill workers at Summit Wool Spinners were taking a break from Friday to create a backlog of work, as local and overseas orders showed little sign of improvement, director Ricky Hammond-Tooke said.
Employees would receive full pay, all entitlements and no reduction in ordinary annual leave.
Administrative and salaried staff would remain at work as there was enough work for them.
"We think it's better for our people have a short break away with their families and return to a productive plant, rather than just standing around machines," Mr Hammond-Tooke said.
Inventories were being slowly used up, and the outlook was better for orders by the end of the year, he said.
New Zealand's largest independent wool spinner, owned by Sumitomo Corp of Japan, supplies yarn to carpet and rug-makers in New Zealand, Australia, South East Asia and the United States.
The latest arrangement followed a meeting between the union and the company.
"A traditional corporate approach could have seen more than 150 redundancies made over the last few months, which would have been devastating for the workers concerned and a disaster for the local community," union regional organiser Ken Young.
"Although we may see a further 30 voluntary redundancies occur, since the global economic crisis has hit, Summit has not made one compulsory redundancy.
"It is a pity we are not seeing the same approach from some New Zealand owned firms and their banks; they seem to prefer a slash and burn approach which contributes to the recession rather than helping resolve it," he said.
