Carpet maker Godfrey Hirst New Zealand has become the latest victim of the Christchurch earthquake, announcing it will not reopen its yarn plant in the city with the loss of more than 200 jobs.
The Canterbury Spinners factory, in Maces Rd, suffered extensive and irreparable damage during the earthquake, reports from engineers and insurers on the plant said.
In a statement, Godfrey Hirst general manager Tania Pauling said it could take more than 18 months to recommission the purpose-built yarn spinning plant and cost tens of millions of dollars with the likelihood there would be a shortfall in insurance to cover the rebuilding.
The engineers noted the Maces Rd plant was in one of the worst-hit areas in Christchurch and there was no certainty the site would be suitable for future use by the company.
Canterbury Spinners, which had an annual payroll of $13 million, had made an offer to staff to relocate to other plants in the North Island. Some staff had taken up the option but others would face redundancy, she said.
National Distribution Union southern region secretary Paul Watson said 220 textile workers would lose their jobs. Although there were union-negotiated redundancy provisions in place, the announcement came as a heavy blow for workers already reeling from the effects of the earthquake.
No words could adequately describe the pain that would impact on the families of those affected, he said.
"Many of these workers live on the devastated east side of the city where the factory is based. The future of many of their homes is uncertain and now they have to face worrying times in terms of finding alternative work that can meet their current living costs."
The Government needed to provide more support for those workers, Mr Watson said. Canterbury Spinners workers appeared not to qualify for earthquake job loss cover, which was unfair.
All staff would be made redundant and receive compensation but 50 jobs would be offered to Christchurch staff in Canterbury Spinners' two other plants in Lower Hutt and Dannevirke.
