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Sixty employees are "surprised" they face losing their jobs as textile and garment manufacturer Lane Walker Rudkin (LWR) considers relocating its Christchurch textiles division to Auckland.
Chief executive Malcolm Walkinshaw said yesterday the move to Otara was part of a "strategy to consolidate".
He said the company regretted the proposal involved redundancies but with the acquisition of textile manufacturer Pod last year "we currently have significant textile manufacturing duplication in our business".
National Distribution Union southern secretary Paul Watson said today the proposal came "as a bolt out of the blue" and the union would "scrutinise the decision".
The union recently finished 12-months of negotiations for the collective agreement and was "surprised" when the proposal to move to Auckland was announced as it was not mentioned during the negotiations.
"Little notice" given to the union before the announcement was made and the consultation process was "completely unacceptable" Mr Watson said.
"It's an iconic New Zealand company...it seems on the surface to be an economic decision but it's a complete reversal of the approach the company was taking earlier in the year when its intentions were declared that it was wanting to bring more work to Christchurch."
There was now a week of consultation but "it seems to have a flavour that minds are already made up", Mr Watson said.
"Christchurch is the heart of the LWR company and it's had a tremendous history and dedicated workforce for decades."
LWR brought Pod in September last year for 50c per share, or a total of $22.5 million.
Mr Walkinshaw said the move would reduce operating costs and help the company in "retaining a sustainable manufacturing base in New Zealand".
The Otara site offered greater throughput, space for expansion, lower relocation and operating costs, reduced capital needs and an established roster that required minimal additional staffing.
He said LWR would have a week-long period of consultation with employees and their union representatives.
The company aimed to announce its final decision on the proposed relocation on November 13.
"We have loyal and committed staff in Christchurch, some who have been with the company many years, so we intend to do the right thing (by offering counselling and work transition services)", Mr Walkinshaw said.
- NZPA
