Up to 80 Fisher & Paykel workers will be made redundant next year as the company closes one area of its Auckland whiteware plant.
The bulk of the redundancies are occurring in the plant’s refrigeration parts division and follow the announcement Fisher & Paykel will be opening a US plant in Ohio to service its growing American market.
EPMU organiser Maurice Davis describes the redundancies as part of the problem manufacturing faces in New Zealand: "We’re so far from the big markets companies have to move closer to them or look for other ways to reduce their costs."
The proposed free trade deal with China, the strong New Zealand dollar and the logistical issues related to distance have all contributed to the move.
"Manufacturers like Fisher & Paykel face transporting their goods 14,000 miles," says Davis, "and it appears they are not getting much support in terms of a proper plan for manufacturing in this country. If a smart company that’s invested in research and development like they have is struggling then what happens to the companies with poor productivity?"
"It seems that manufactured goods in New Zealand are being sacrificed for access for primary goods into foreign markets" says Davis.
The EPMU is currently in consultation with Fisher & Paykel over the timeline for the redundancies.