Union makes progress on Feltex workers' pay rates

A union representing hundreds of nervous Feltex workers says the new owner has agreed "in principle" to maintain pay rates that had been under threat.

New Australian owner Godfrey Hirst and union organisers and delegates concluded talks yesterday by agreeing to a number of principles, including no reduction in pay or allowances, National Distribution Union national secretary Laila Harre said.

When Feltex went into receivership last month, workers faced pay cuts under Godfrey Hirst collective agreements, which the union considered unacceptable.

Ms Harre said there was "nothing to report" on efforts to get larger redundancy payouts for Christchurch workers who conducted a six-hour wildcat strike on Wednesday.

A Godfrey Hirst spokesman yesterday confirmed the talks had concluded and said terms and conditions had been agreed to. He referred the Herald to the unions for details.

Ms Harre said very good progress had been made during the talks and the principles agreed to would be put to its Feltex membership of up to 500 workers around the country.

"The key principle is that there will be no reduction in pay or allowances and the income of workers will not reduce. It is a very significant achievement."

Cuts in pay and conditions would likely have seen an an exodus "with workers taking up alternatives where they could".

A lot of work still needed to be done on detail, and "the devil is in the detail", Ms Harre said.

About 100 workers at Feltex's Riccarton plant downed tools on Wednesday in protest at the capped $15,000 payouts from the receiver.

The plant is to be closed and 134 jobs will be lost, and workers say some are owed up to $70,000 in redundancy.

Ms Harre said this issue had been raised and "we will continue to raise it with Godfrey Hirst and others".

"There is a moral, if not legal, responsibility to these workers."

Godfrey Hirst is keeping Feltex plants at Lower Hutt, Foxton, Feilding and Dannevirke operating. Employees at the Auckland and Wellington sales offices will keep their jobs.

A plant at Kakariki is also to close, with the loss of 44 jobs.