Twenty contracting jobs may go from Downer EDI Works after it recently lost a Dunedin City Council contract to rival business Fulton Hogan, but Downers is confident other positions will be found for the affected staff.
Downer general manager of southern operations, Mark Keane, confirmed when contacted late yesterday that no more than about half of 40 existing maintenance staff (former Works Infrastructure staff) undertaking vegetation and maintenance work for the DCC, would lose their jobs.
"We are in a consultation process with staff for the next two weeks,'' Mr Keane said.
He was confident Fulton Hogan would require contracting staff for their new DCC contract and Downer itself would have positions available at its Southland, Central Otago and Christchurch operations.
Last week, 430 manufacturing jobs were axed at the Fisher and Paykel Appliances plant near Mosgiel, followed by 50 jobs at Tamahine Knitwear.
However, Mr Keane said unlike the manufacturing sector, contracting was cyclical by nature and it was not unusual for staff to move.
"Unlike the manufacturing, we won't be losing 20 positions from Dunedin. Our situation as a contractor is very dependent on success at the tender box,'' Mr Keane said.
About 15-20 positions at Downer's Dunedin branch had become vacant in recent months. The jobs would not be advertised until the outcome of tenders and contracts were known, Mr Keane said.
