14 May 2012


Media Release

Government to blame for destroying over 50 manufacturing jobs

The closure of Auckland tube and wire products manufacturer, Wire by Design today, with the loss of 55 jobs, is entirely the government’s fault, says the Engineering, Printing and Manufacturing Union.

The company had been embroiled in a three year old legal wrangle with Transit New Zealand over a compensation claim for the relocation of its factory following Transit’s building of the Onehunga motorway extension. During that time Wire by Design had fallen behind with his tax payments to Inland Revenue and went into voluntary liquation last week.

“Here we have a manufacturing company that’s been in business for over a hundred years and it’s now finished - all through poor government management and incompetence,” says Joe Gallagher, EPMU National Industry Organiser. “The tragic irony is that many of the workers who are being made redundant today because of non-payment of government taxes will end up being paid by the government through unemployment benefits.”

Mr Gallagher says he is aware that the company owners had made every effort to secure a fair compensation package that Wire by Design would be entitled to under the law. “It was this package that would have kept the company in business, kept jobs going and enabled it to pay its debts. Now not only have they lost the business, but there’ll never be any compensation.”

Mr Gallagher says under the Public Works Act the Crown is obligated to relocate the business to alternative premises on a ‘like for like’ and ‘same functionality’ basis as enjoyed at the old site.

“It’s a disgrace the government did not come to the party and fix the compensation issue. Transit had spent millions of tax-payer funds on lawyers and consultants on a botched relocation from start to finish.”

Mr Gallagher says the EPMU will be working closely with its Wire by Design members to ensure they get their full entitlements at this very difficult time.

ends

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