Most staff now to lose jobs after Otaki factory fire

Nearly all of the staff from an Otaki plastic recycling factory destroyed by fire in January will lose their jobs after earlier hopes they would be able to be kept on.

Pacific Plastics Recyclers burned to the ground in a suspicious fire on January 23 but the plant's management had hoped to keep the 35 staff on with help from Work and Income, pending rebuilding the factory.

But company general manager John Cribb has now said 27 will be made redundant.

Mr Cribb had believed Work and Income would have been able to help and said a case manager had given them assurances the government department would help the company retain the workers.

"Winz indicated they would subsidise us, possibly through Task Force Green, so we could clean up the site and at the same time keep our staff employed till a new factory was completed in about six months," Mr Cribb told the Dominion Post.

"It is gut-wrenching to be told this week that they are not going to help at all.

"I am devastated that I now have to decide which 27 families will lose their incomes."

The company also faced having to find and train new staff in six months' time when the factory was rebuilt.

But Work and Income Kapiti manager Jacqui Ferrel said no assurances or commitment had been given that it would be able to help the company financially.

"We said we could provide support for staff if they were made redundant," she said.

" Unfortunately, though we are sympathetic, after carrying out research, there is nothing in our existing policy which entitles us to help the company financially."

- NZPA