Almost 300 Illawarra clothing manufacturing workers, many of them in tears, were told yesterday their jobs would be axed with the closure of the Bonds factory at Unanderra and the KingGee factory at Bellambi.
The announcement stunned the mostly female workforce, many of whom have worked for the iconic clothing brands for decades.
The decision by Pacific Brands to move its manufacturing operations offshore will result in a loss of 281 Illawarra jobs and 1850 jobs nationwide.
Does this affect you? Send us a text message on 0409011060 or email us at scoop@illawarramercury.com.au VIDEO: The workers react
The surprise announcement was first made via the Australian Stock Exchange, a move that angered state secretary of the Textiles, Clothing and Footwear Union of Australia, Barry Tubner.
"This has been sprung on us this morning," Mr Tubner said.
"The company decided it owed more allegiance to the stock exchange than it did to staff and union members."
Mr Tubner described the decision as a "knee-jerk reaction" to the share market.
"This is the wrong time for 280 people to lose their jobs in Wollongong."
The company said the closure of both sites would be finalised next year, but federal MPs Sharon Bird and Jennie George have both been informed the Bellambi factory is to close this July and Unanderra in February 2010.
In the ASX statement, Pacific Brands chief executive Sue Morphet said the move was to "restructure and sharpen the focus of the business".
"We have persevered where others have stopped manufacturing before us," Ms Morphet said.
"This is the only responsible decision available to us.
"We have not made these decisions lightly. We have considered the well-being and contributions made by all our staff.
"Ultimately this is the correct course of action for the future strength of the business and the remaining employees. All entitlements of affected staff will be met.
"We are working closely with our employees, their unions, the Commonwealth and relevant state governments to provide appropriate assistance to those being made redundant."
Ms Morphet said although clothing would now be made overseas, Pacific Brands, which will still employ 7000 people, remained an Australian company.
"Everything we do here, everything that is Bonds, everything that is Pacific Brands is Australian thinking for the Australian market, Australian design, Australian benefit and Australian jobs."
The union believes a lot of the sites slated for closure were viable and had been helped by the fall in the Australian dollar during the past six months.
"With the weak dollar some manufacturing companies are looking at coming back to Australia, so Pacific Brands' decision is at odds with that," Mr Tubner said.
Pacific Brands, which also manufactures Holeproof, Dunlop, Stussy, Mossimo, Berlei and Hard Yakka brands, is one of the country's largest clothing manufacturers.
Since the 2000-01 financial year Pacific Brands has received more than $72 million in government assistance.
The job cuts came on the eve of NSW Premier Nathan Rees' two-day jobs summit, which starts in Sydney today.
Pacific Brands posted a loss of $149.95 million in the first half of the 2008-09 financial year, but Ms Morphet declared the result as "solid". Pacific Brands' share price yesterday fell 37 per cent to 22c.
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