June 29, 2007
Media Release

Gale Pacific likely to close NZ operations

Textile manufacturer Gale Pacific announced this evening that it is considering moving its New Zealand manufacturing operations to China at the loss of around a hundred jobs in Christchurch.

The company and unions at the plant will now enter an eight day consultation period as provided by the collective agreement, but it appears almost certain the plant will be closing in order to move closer to its markets.

Engineering, Printing and Manufacturing Union Acting National Secretary Ged O’Connell says unions at Gale Pacific are now looking to the consultation process to see what can be salvaged.

“We’re meeting with the company next week to see what can be done to keep production, or at least part of it, in New Zealand. While it’s pretty clear they’re intent on moving to China, we understand there’s scope to keep at least a small amount of production here.

“If, as we suspect, production does move offshore we’ll be doing what we can to make sure the workforce is looked after. There’s a very good redundancy package in the collective agreement, and we’ll be doing what we can to try and find our members some alternative employment.

“In the meantime, we can only repeat our call for the Government to appoint a Minister of Manufacturing and start implementing some policies to help stem the flow of manufacturing jobs overseas.”

Gale Pacific’s closure comes off the back of recent closures by Christchurch manufacturers Dynamic Controls, Skellerup and Gunns Veneer.

The National Distribution Union also represents members at Gale Pacific.

ENDS

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