Mill job losses blow to town

A sagging market for carpets has hurt Dannevirke's Canterbury Spinners woollen mill.

News of more job losses at Dannevirke's Canterbury Spinners woollen mill, owned by Godfrey Hirst, is another blow to the fragile local economy, Tararua District mayor Roly Ellis says.

Godfrey Hirst's public relations spokesman Geoff Senescall has confirmed to the Dannevirke News "there is a process under way with the company in discussions with First Union".

On Wednesday Mr Ellis said he had heard rumours of the impending redundancies.

"I haven't much information, but this news isn't good for Dannevirke," he said. "We don't usually get much information from the company but I was initially told, unofficially, that five staff were to be laid off. Then I was told it could be eight.

"This is very disappointing when we were told last time after there were redundancies at the plant they would be the last."

In 2013 Godfrey Hirst laid off 50 workers, just 12 months after asking for 12 staff to take voluntary redundancy. At the time a company spokesperson said the economic climate had been a challenge and the prospects for the company depended on the world economy.

Four years earlier 10 staff lost their jobs at the plant and in May last year another three staff were laid off.

However, Mr Senescall said at this stage no decision on numbers had been made, but hinted market forces were to blame.

"It's a difficult market out there for carpets," he said.

The Dannevirke News understands approximately 31 staff remain at the plant and Suresh Patel, a High St retailer and chairman of the Chamber of Commerce, has expressed concerns about the mill's future.

"Unfortunately, when numbers start dwindling it's hard to know what will happen to the plant. News of these latest job losses are another blow to our town," he said.

"It would be nice if there were job opportunities here for any workers who are laid off, but jobs are few and far between at the moment."

Paul Watson, a spokesperson for First Union which represents the workers at the Dannevirke plant, told the Dannevirke News a meeting had been held between union representatives and the company on Wednesday night.

Dion Martin, the Palmerston North branch organiser for the union said he couldn't confirm how many mill staff would lose their jobs, but said anyone who wanted to put their hand up for voluntary redundancy would be considered first.

"We'll have the exact number of redundancies early next week, before Easter," he said. "At the moment the plant runs a three, eight-hour shift structure and it's likely the midnight to 8am shift will be dropped."

Mr Martin said the economic climate has forced the company into the latest redundancies.

"When I first began working with the company 180 staff were employed," he said.

"People are using flooring these days which may not be the same quality and although Godfrey Hirst had budgeted for reducing capacity, the production throughout New Zealand's yarn plants is dropping."