First Union and the Engineering, Printing and Manufacturing Union (EPMU) announced the job losses late yesterday, in the wake of a downturn in orders that led to the Japanese-owned company discussing job restructuring with unions and staff since April.
About 250 staff were employed at the plant before yesterday's announcement.
The redundancies were reflective of the difficulty manufacturers were facing in New Zealand, First Union textile secretary Paul Watson said.
"While it is good news we are not dealing with a full plant closure, Summit is one of North Otago's biggest employers and these job losses will be felt throughout the region," he said.
The redundancies at Summit were indicative of the problems facing the manufacturing sector.
"We are constantly hearing from export firms who are struggling to compete and find markets in the current global economic downturn. Industry cannot stabilise and grow while the dollar is so high, and government action was needed to deal with the volatile New Zealand dollar," Mr Watson said.
The EPMU echoed that view, saying the Summit redundancies showed the need for government action to protect manufacturing sector jobs.
The company has cited a lack of orders overseas, driven in part by the high exchange rate, as a cause of the redundancies.
EPMU national secretary Bill Newson said the job losses would be a blow to the workers affected and the wider community.
"A lot of our members are already considering moving out of the region to find work, with many of them looking to Australia.
"It's time the Government recognised that its hands-off approach isn't working.
"The high dollar is killing our exporters, and we're only going to see more job losses like this unless the Government steps up with a coherent strategy to support firms struggling with the economic downturn.
All union members affected by the job losses will receive a redundancy package, as specified in their collective agreement.
The EPMU and First Union had also negotiated a restructuring of shifts, with the company ensuring remaining staff had their incomes protected.
