Sovereign lays off more workers

By MATHEW DEARNALEY

Superyacht builder Sovereign Yachts has laid off more workers from its Hobsonville base during a dispute over freight charges on an imported hull.

Owner Bill Lloyd confirmed yesterday that he was laying off electricians and some others after work ran out for them following the launch of his first locally produced luxury craft, the 41m Sovereign Lady, but he would not say how many.

A workplace source said an on-site subcontractor packed up his tools in disgust on Monday after watching five or six workers emerge from an office with redundancy letters and looking "somewhat dazed".

This followed the dismissal of four workers on Friday with a week's pay in lieu of notice but no redundancy compensation.

Mr Lloyd, an expatriate New Zealander, returned from Canada to set up Sovereign Yachts on former defence land with strong Government encouragement.

Sovereign Lady was built "on spec" to show America's Cup visitors what the company could produce.

It is on sale for about $27 million.

Mr Lloyd, approached at the Viaduct Harbour after returning on Sovereign Lady with the America's Cup fleet yesterday, asked the Herald what was he expected to do if there was no work.

He hoped to recall some workers when a dispute was resolved over freight charges on a second hull imported from Canada.

He said he was the victim of a "rip-off" in which a freight firm had quoted him US$71,000 ($129,000) to deliver the hull and now wanted US$130,000.

Further reading: nzherald.co.nz/marine