Statement From Pacific Brands Group General Mngr

Press Release – Pacific Brands

As previously advised, Pacific Brands put a proposal to staff in New Zealand in early March that involved exiting the manufacturing of clothing in Palmerston North and exiting the Christchurch sock factory. Following a consultation period, the company …

Media Statement

Update on Pacific Brands at Christchurch and Palmerston North

For Immediate Release, Tuesday 30th June 2009

Statement from Ross Taylor, Group General Manager, Underwear and Hosiery

As previously advised, Pacific Brands put a proposal to staff in New Zealand in early March that involved exiting the manufacturing of clothing in Palmerston North and exiting the Christchurch sock factory. Following a consultation period, the company undertook a process in a bid to sell the Palmerston North business.

Unfortunately, despite our best efforts, a sale has not been able to be achieved. Following some initial interest, all parties concluded that the business case was not justifiable.

As a result, a decision has been made to close the Palmerston North business on 31st July. Pacific Brands will be paying all entitlements in full as per their contractual obligations. In addition, Pacific Brands has also developed, in conjunction with the NDU and Kelly Careers, an extensive retraining and outplacement program available to all workers being made redundant.

The program involves:
• Funding provided by Pacific Brands which is available for retraining in areas likely to result in employment. We are not assigning a set amount per employee however if all employees utilised this fund it would equate to $3,000 per employee;
• Outplacement advice from Kelly Careers, who are providing assistance in preparation of CV’s, interview skills, career guidance, and other related areas;

At Christchurch, the company has been able to sell its contract socks business to local management. However, the Christchurch factory will still close at some time in late July or early August this year. All workers have been offered the same retraining and outplacement program.

This has been an extremely difficult period for all of our people and we will continue to work with them to ensure they are provided with the best possible support.

Palmerston North produces thermal products and the Christchurch factory predominately manufactures socks as well as some thermal product. Each site currently employs 46 people.

ENDS

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