Workers struggle to come to terms with Feltex receivership

Night shift workers heading home after their meeting with receivers at the Feltex Carpets New Zealand Woollen Spinning Yarn Plant in Lower Hutt this morning. Picture / Mark Mitchell

UPDATE - Feltex workers tried to go about their business as usual despite fears for the future, after news of the company's receivership spread like wildfire this morning.

At the Lower Hutt yarn spinning plant, union delegates held talks with the receivers and site managers as workers carried on with their day roster.

"We were told to keep working as usual, so we are trying," said one employee.

But afternoon shift delegate, Ken Edmonds told the Herald that a big majority of the 180 workers at the factory had been employed there for more than 10 years.

"For me and my partner, if we lost our jobs, we would lose our house, we would lose everything. We're not getting any younger," he said.

The receivers told staff at the plant that they want to sell the company as a going concern and that there are willing purchasers.

Workers were told that work would continue as usual on normal pay and extras.

But the National Distribution Union delegate, John Seggie, said it was still a period of stress and fear for workers would had no guarantees their jobs would continue in the future.

The day began with workers at the plant finishing the night shift and being replaced by the day roster at 8am as rumours spread of an imminent announcement.

One worker told reporters gathering outside the plant that they had been half expecting an announcement of receivership for weeks as the fortunes of the New Zealand carpetmaker hung in the balance.

But the word came just before 9am when representers of the receivers, McGrath Nicol and Partners, arrived.

The receivers went straight into talks with the union and site management.

One worker at Lower Hutt told reporters: "We don't know what's going on. We don't know anything."

In Hawkes Bay, Tararua mayor Maureen Reynolds said the potential loss of 150 jobs at Dannevirke's Feltex carpet plant would be a disaster for the town.

Mrs Reynolds was on her way to the plant late this morning to hear the ANZ Bank-appointed receiver tell the workers whether their jobs would be safe in the near future.

"What makes things worse is that there are many couples that work at the plant as well, so there could be double incomes lost," she said.

Mrs Reynolds said she had spoken to the manager of the plant a couple of weeks ago who, she understood, had been "moved on" to another job.

"I believe there is an interim manager there now."

The mayor had also spoken to Work and Income, which was working on a plan to help find alternative work for anyone who might lose their jobs.

"We have two big meat-processing plants here which have a large number of workers. Maybe some people could pick up work there.

"There is also the agricultural industry but that will be a matter for Work and Income to deal with."

She described the situation for workers at the plant, and for Dannevirke's 5000 population, as "absolutely disastrous".

"I feel the workers have been treated very poorly. They haven't been given enough information," the mayor said.

Union delegates representing workers at Dannevirke's Feltex Plant headed to the site this morning.

National Distribution Union organiser Kaye Hearfield said the union had advised the 150 workers at the Dannevirke plant to stay on site after they had finished their shift.

"Once our people leave the site, it may be hard for them to get back in," she said.

"We will be communicating with workers over the phone there today."

Feltex has a scouring plant employing 45 at Kakariki near Marton, a yarn spinning plant in Lower Hutt employing around 200, a yarn spinning plant in Feilding employing 85, a yarn spinning plant in Dannevirke employing 150, a plant manufacturing tufted carpet in Foxton employing 135 and a plant manufacturing woven carpet in Christchurch employing 170.

There are also 45 staff in sales and administration in New Zealand.

- Additional reporting NZPA