Nearly 300 workers will lose their jobs in the Illawarra after
Pacific Brands announced it was closing its Bonds and King Gee manufacturing operations in the region.
The company announced it will axe 1850 jobs across Australia after posting a first-half loss of $149.9 million, which it blamed on difficult market conditions.
Employees were only told of the redundancies at lunch time today, and union bosses are meeting in Sydney this afternoon to discuss what entitlements workers will receive.
The Illawarra will be particularly hard hit by the company's decision to shed jobs over the next 18 months.
The Bonds manufacturing plant at Unanderra will close, resulting in the loss of 207 jobs, while 74 staff will be made redundant from the King Gee site in Bellambi.
Other sites across Australia to be affected are:
Bonds at Cessnock, 83 job losses Bonds at Wentworthville, 233 job losses CTE West End, Queensland, 56 job losses Holeproof at Nunawading, Victoria, 255 job losses Hosiery at Coolaroo, Victoria, 298 job lossesAs a result, many iconic Australian clothing brands including Bonds, King Gee, Holeproof and Hard Yakka will now be manufactured offshore.
In a joint statement, Cunningham MP Sharon Bird and Throsby MP Jennie George said they were "very disappointed" by the job cuts.
"This decision comes at a very bad time for the region's economy as we face the consequences of continued global financial instability and slowing global economic growth," they said.
Displaced employees would be eligible for immediate assistance under the Government's Intensive Support Customised Assistance program, they said.
Textiles, Clothing and Footwear Union of Australia NSW secretary Barry Tubner said delegates would meet at Pacific Brands Wentworthville factory at today to discuss the situation.
"This has been on sprung on us this morning,'' Mr Tubner said.
"The company decided it owed more allegiance to the stock exchange than it did to the union and union members.''
Mr Tubner described the decision as a "knee-jerk reaction'' to the sharemarket.
"This is the wrong time for 250 people to lose their jobs in Wollongong.''
Pacific Brands chief executive Sue Morphet said the company's first half results were "solid" and in line with its financial guidance.
She said the uncertain economic climate remained challenging, with consumer confidence at low levels.
"We will discontinue some of our smaller labels and brands to reduce complexity and cost and divest some non-core businesses and facilities, some as going concerns,'' Ms Morphet said.
"Unfortunately these changes will necessitate 1850 job losses in Australia over an 18-month period including 1200 in clothing manufacturing.''
For more coverage see Thursday's Mercury.
Are you affected by the Pacific Brands redundancies? Post a comment below, send us a text message on 0409011060 or email us at scoop@illawarramercury.com.au
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