Crisis meeting in bid to save jobs

Waitaki Mayor Alex Familton hopes the new owner of Oamaru's woollen mill can be convinced to retain as many staff as possible, saying it would be a ''dismal day'' for the town and the wider Waitaki district if that did not happen.

Both Mr Familton and Waitaki MP Jacqui Dean will attend a meeting in Oamaru today to discuss the issue.

Mr Familton said the plant was worth millions of dollars to the local economy, and the shockwaves if it were to close or significantly reduce its workforce would be felt by many businesses across the district.

• Mill sold, 192 staff laid off...

''It has potentially put 200 wage-earners in a devastating position. I'm meeting with the company to ascertain the detail. Hopefully, the new purchaser can keep the company going.

''It's very sad. I know a lot of people who work here; my father worked here in the 1940s.

''This facility has supported a large number of people for well over 100 years. Over that time, it really did become part of our social fabric.

''It really is a dismal day for the district if this is to happen. One must believe that the new owners can find a use for this facility,'' he said.

Mrs Dean said Summit Wool Spinners had signalled for a while that market conditions were changing and, globally, demand for wool carpets had eased.

That, coupled with the high dollar, most of which was influenced by the global financial crisis, had an adverse impact on the company, she said.

Summit had done everything possible over the past few years to keep the company viable and had a strong focus on looking after its workers, she said.

Mrs Dean said her door was ''always open'' to any constituents and government agencies would also ''fall in'' following the announcement.

Employees approached by the Otago Daily Times yesterday declined to comment on the news.

Labour Party finance spokesman David Parker, a former Otago MP, said there would be ''worried discussions over the dinner table and many sleepless nights'' in Oamaru.

He thanked Sumitomo Corporation, which had supported Oamaru and helped local workers improve the productivity of the Oamaru factory.

''Despite their efforts, with no help from this Government on the exchange rate, one of the largest employers in Oamaru has been forced to give up.

''This will obviously have dire effects for those working at the factory, as well as for Oamaru.

''It is a further blow to Otago, which lost Hillside workshops just a month ago,'' he said.

Mr Parker said the owners and workers of Summit were ''yet more victims of the high dollar which is crippling exporters and costing jobs''.