Union Hails Summit’s Approach To Recession

Union Hails Summit’s Responsible Approach To Recession

Media Release
National Distribution Union
Thursday 4 June 2009

The National Distribution Union (NDU) is hailing the response of Oamaru’s Summit Wool Spinners to a further downturn in the international wool yarn spinning industry.

NDU Regional Organiser Ken Young said that a meeting between Summit and the unions today had developed a very humane way to deal with the downturn in orders and production that Summit is still experiencing.

“Summit and the unions today agreed to call for up to 30 more voluntary redundancies and a paid 8 day mill closure,” Ken Young says.

“This comes on top of almost 50 voluntary redundancies and short weeks that have been negotiated and undertaken from late March this year.

“A traditional corporate approach could have seen more than 150 redundancies made over the last few months which would have been devastating for the workers concerned and a disaster for the local community,” says Ken Young.

“The union is very pleased at the responsible attitude being taken by the Japanese and local management of Summit in this very difficult time,” says Robert Reid, President of the NDU.

Summit is owned by the Japanese Sumitomo Corporation.

“Although we may see a further 30 voluntary redundancies occur, since the global economic crisis has hit, Summit has not made one compulsory redundancy. A combination of workers agreeing to work short weeks, voluntary redundancies, the Government’s Job Support Scheme (nine day fortnight) and the company willing to fund a two week close down has averted an economic and social disaster for Oamaru and the workers concerned,” he says.

“It is a pity we are not seeing the same approach from some New Zealand owned firms and their banks; they seem to prefer a slash and burn approach which contributes to the recession rather than helping resolve it.

“We hope the global wool yarn market will improve over the next period so that normal production will be able to recommence as soon as possible,” says Robert Reid.

ENDS

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