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Home / Business / Economy / Employment

Firm confirms 64 jobs axed and hopes they'll be the last

James Ihaka
NZ Herald·
6 May, 2009 04:00 PM2 mins to read

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Hamilton vehicle manufacturing plant Caravans International Munro has confirmed its workers' worst fears and axed 64 jobs.

CI Munro chief executive Grant Webster said the economic downturn coupled with falling demand for its Maui and Britz campervans and motorhomes and a drop in tourist numbers were the driving factors behind
yesterday's announcement.

The news is a bitter pill for workers to swallow and comes just three months after 20 of their colleagues were laid off in February.

At the beginning of the year CI Munro's staff numbers were more than 180 but after yesterday's announcement that figure is now 99.

Among those to lose his job yesterday was a man who wants only to be known as Glen who said the announcement was "definitely sad but expected".

"Because of the first redundancies in February, we all thought there would be another round and sure enough there was."

Glen, who is looking at a painting job, said workers saw things unfolding last year when it became clear orders for campervans and motorhomes were well down.

The company later reported a loss of $3.2 million in the six months to December 31.

"They [the company] had a big workforce and to keep people employed they really had to keep building more homes and caravans on all the lines," Glen said.

"It just wasn't to be, but life goes on."

Mr Webster, who told staff last week that many were facing redundancy, could not guarantee there would not be further lay-offs.

But he said he would be surprised if there were.

"This has obviously really cut us back to manage what we see as the worst-case scenario," he said.

"I would certainly hope this is the full extent of it ... It should be unless there are further dramatic changes in the world economy."

Engineering, Printing and Manufacturing Union organiser Peter Cooper-Davies, believed the downturn was "cyclical"and was hopeful the company would consider re-employing some of its former workers when demand picks up again.

He said the workers were upset but understood the company's plight.

"In the end there just wasn't the demand there for the campervans and motorhomes that there used to be," said Mr Cooper-Davies.

"We explored every single option there was in regards to alternatives and the company were quite co-operative around that."

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