Hamilton-based Caravans International Munro today confirmed it will cut 64 jobs.
The company, which builds and rents out motorhomes and caravans, said it had been hit particularly hard by a drop in tourist numbers brought on by the global recession.
A division of Tourism Holdings Ltd, CI Munro reported a
loss of $3.2 million in the six months to December 31.
"The decision to cut jobs was based solely on the current global economic conditions and lack of demand for the recreational vehicles, private motorhomes and caravans the company produces," Tourism Holdings chief executive Grant Webster said.
"It is important to note that the decision is not a reflection on the team at CI Munro."
The reduction in the size of the business was based on expected volumes over the next 12-18 months, Mr Webster said.
"The changes, whilst difficult, place the business on a much more secure footing and whilst nobody can predict the future we are here to support this business and we will do so with a positive outlook."
The company met with workers and union representatives yesterday to discuss the planned redundancies.
"The focus from today is on ensuring we provide the right level of support for all those affected and give them the best possible chance to find work elsewhere."
Engineering, Printing and Manufacturing Union (EPMU) organiser Peter Cooper-Davies said the redundancies seemed to be an inevitable outcome.
"We explored every single option there was in regards to alternatives and the company were quite cooperative around that," Mr Cooper-Davies said.
"They were very open with the union with regards to the company's position and what was affecting their business to go down this track.
"The consultation process ended up being quite good."
He said the workers were very upset but understood the company's position.
"No doubt people look for people to blame or reasons for why it has happened, but the bottom line is the actual economic conditions."
- NZPA
