Biggest employer's job cuts hit town

Wellsford's largest employer has dealt the town a body-blow with its announcement that it will close "uncompetitive product lines" at its north Rodney factory.

US-owned Irwin Industrial Tools, which manufactures circular saw blades, employs 162 staff and exports 99 per cent of its production.

About 105 staff are expected to be made redundant.

Operations director Michael Kelly yesterday blamed "a challenging economy and other business factors" for the company's downsizing.

"This decision has been a difficult one to make, and in no way reflects on the hard work and dedication of our workforce in New Zealand.

"We will treat all affected employees with dignity and respect throughout this period and are offering them assistance to make this transition as smooth as possible."

The lay-offs are expected to take effect by early next month.

Rodney District Mayor Penny Webster said the closure would be "very difficult" for the town, but the council would look to work with the Rodney Economic Development group.

In the South Island, a forestry processor is planning to axe about 60 jobs as it restructures its operation in response to the global financial crisis.

Nelson Pine Industries said the company would have excess capacity if it continued to operate the whole plant on a 24-hour continuous basis, and the restructuring would get as much work as possible done during weekdays.

The change would result in about 60 jobs becoming "surplus to production requirements".

The situation was announced to the staff yesterday, said managing director Murray Sturgeon.

"By trimming operations now, Nelson Pine will be in a better position to respond when the recovery occurs."

Consultation with staff and unions would explore alternatives before redundancy notices were issued.

Mr Sturgeon said the company would provide all assistance possible to affected staff.

"Today is a black day in the history of the company, but we have every expectation market conditions will recover as soon as world financial markets improve.

"The company is in a sound financial position and will soon be commissioning a major capital investment in a new finishing plant.

"It is unfortunate that this coincides with the largest market downturn the company has experienced in recent years."

Nelson Pine Industries employs 265 people at its Richmond site.

Unions said the announcement was a sign the global recession was starting to have a local impact. They would be trying to save any jobs they could.

"Now is the time to roll out some of the 'innovative solutions' talked about at the Job Summit," said Paul Watson, of the National Distribution Union.