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A second major New Zealand company is considering moving its manufacturing overseas, less than 24 hours after Fisher and Paykel said it was axing 350 staff and shifting operations to Thailand.
Sleepyhead is reviewing whether to move its operations to China or elsewhere and indicated the decision would be taken within 12-months.
The National Business Review reported earlier today that a shift would take place and that 250 jobs would be lost at the bed manufacturer.
Now managing director Graeme Turner says Fisher and Paykel's move shows manufacturers have reached a "tipping point" and says the situation is under constant review.
He blamed interest rates, exchange rates and subsidies given to manufacturers in countries like China.
Mr Turner said: "If conditions don't improve our options will ultimately be the same as for other manufacturers."
Sleepyhead employs 500 people at three plants around New Zealand.
EPMU national secretary Andrew Little had already said the Fisher and Paykel closure was a wake-up call to the Government to start taking manufacturing in this country seriously.
Economic Development Minister Trevor Mallard defended the Government's policies today.
He said: "I acknowledge the pain many exporters and their workers are feeling right now.
"But I want to reassure them that this government has the right strategy to ensure we have a more resilient and flexible economy, so our firms can remain globally competitive and withstand outside pressures – such as the low US dollar impacting on our currency."
The Alliance Party and the Greens reacted with shock at the decision to move to Thailand.
Alliance Party president Victor Billot said the layoff of 350 workers at Fisher and Paykel was a result of free market policies and corporate globalisation.
The Fisher & Paykel plant closure showed the future of globalisation for New Zealand workers and had to be resisted.
Green Party economic development and employment spokesperson, Sue Bradford, said the announcement of 350 job losses was the largest, but only one of a number of manufacturing closures and job loss announcements that had been made over the past few weeks.
"Fisher & Paykel is seen as an iconic NZ manufacturing company," Ms Bradford said.
"I am therefore very disturbed not only to hear today's announcement of 350 job losses, but also the statement of F&P managing director John Bongard when he says there are no guarantees the rest of the company's manufacturing jobs won't one day also be moved offshore."
- NZHERALD STAFF, NZPA
