Safe Air will cut about 100 jobs. Photo / Simon Baker
An Air New Zealand engineering subsidiary has to shed about 100 jobs because of delays in a military contract in the United States.
Safe Air in Blenheim had increased its workforce to prepare for major upgrade work on the Air Force's ageing C-130 Hercules aircraft, as a sub-contractor to US-based
company L-3 Communications.
But long delays in delivery of the aircraft from the US meant Safe Air's workforce of 351 now had to be cut, said Air New Zealand spokeswoman Vanessa Stoddart.
"If we don't make this tough move, Safe Air will incur significant losses that would put the jobs of the remaining workforce in jeopardy."
Defence Minister Wayne Mapp said he was very concerned by the $234 million project's delays, related to software problems, but it was hard to get the planes back in time to save the jobs.
"These aircraft were supposed to be delivered back in late 2007, but still haven't been delivered," Mr Mapp said.
Marlborough Mayor Alistair Sowman said many of those who lost their jobs would likely have to pack up their families and leave Blenheim for other employment. "It's going to have a huge impact right across our community."
The Engineering, Printing and Manufacturing Union (EPMU), which has 200 members at Safe Air, echoed the concerns.
"These are highly skilled, relatively highly paid jobs and any redundancies will be a huge blow to the Blenheim community and to the local economy," said national secretary Andrew Little.
Ms Stoddart said the airline had worked hard to generate additional work for Safe Air.
