NZ wool spinner to reveal Oamaru plant restructuring plan

24 Apr '12

2 min read

Summit Wool Spinners, New Zealand's biggest independent spinner, will outline its restructuring plans for its Oamaru yarn plant and make it known to staff and union representatives.

Last week, Summit Production Manager Phillip Howe, said the company is considering all options including job cuts at its Oamaru plant, as the firm is hit by low demand for its products.

Mr. Howe had maintained that the firm would shortly start consultations with representatives of workers, before making any final announcement.

John Gardner, organizer of Engineering, Printing and Manufacturing Union (EPMU) in Timaru, said Summit would present its restructuring proposals to EPMU delegates, which would be followed by a meeting with staff.

The outlining of workplace changes would mark the beginning of the consultation phase between the union and the company, Mr. Gardner said.

Summit Wool reduced the work hours of its 250 employees since Christmas, owing to a downturn in orders.

Earlier in 2009, following the announcement of the company's restructuring plans, 60 employees accepted voluntary redundancy, while rest of them accepted reduced shifts due to the introduction of the Government's nine-day fortnight scheme at the yarn plant, which was chosen as an option to minimize further job losses.

Local farmers and entrepreneurs started the woollen mill in 1881, which was later on sold by Alliance Textiles to Sumitomo Corporation owned Summit Wool Spinners in 1992.

Fibre2fashion News Desk - India