Thirty-three workers at the Navy's Devonport Dockyard look likely to lose their jobs when the dockyard management changes hands at the end of this month.
The workers were informed by union officials yesterday that they would receive no offer of employment from the dockyard's new managers, VT Fitzroy, ajoint venture of Fitzroy Engineering from New Plymouth and Britain's Vosper Thornycroft.
Babcock, the company that has managed the dockyards for the past 10 years, said the employees had expected they would by rehired by VT Fitzroy and that the Navy had committed a breach of faith by not ensuring this would happen.
"The new contractor has pre-selected staff and the Navy has condoned that," said Babcock chief executive officer Mike Franklin.
Mr Franklin said Babcock had made clear its objections to the Navy, expressing that it was "appalled at the lack of process".
Those objections were made in two meetings with the Navy, one last week and the other the week before, he said.
Babcock lost its bid to manage the dockyards for another 10 years in February.
Mr Franklin said that if it had won the bid, the company would have retained all 220 dockyard staff and expanded the workforce by 50.
The extra staff would have been hired to work on new vessels for the Navy's Project Protector.
A VT Fitzroy consultant refused to comment last night, except to say that the issue rested with the Navy.
Navy spokesman Squadron Leader Ric Cullinane would not confirm that the layoffs would go ahead, saying only that the Navy's concern was with the smooth operation of the dockyard.
"Our interest is the dockyard operating well and efficiently with a professional workforce."
He said the Navy had received no formal communication about the matter from either Babcock or union representatives, despite Babcock's claim that it had voiced its objections at the two meetings.
An official of the Amalgamated Workers Union, one of three unions representing the 33 workers, said the Navy told the unions on Monday that there would be no offer of jobs for those workers from VT Fitzroy.
The official, Pom Auimatagi, said the Navy had told the unions that every company that had bid for the 10-year management contract would cut staff, despite Babcock's saying it planned to increase the workforce.
