80 jobs axed | Wairarapa News | Local News in Wairarapa

Don Farmer

Workers at one of Wairarapa's flagship industries were left shocked and jobless yesterday when the axe fell on Bouzaid and Ballaben, Greytown, and its Pahiatua outpost.

About 80 staff were told their jobs had gone and walked away from work stations some had spent more than 25 years at, without receiving their final pay.

The business in liquidation along with its parent company Lane Walker Rudkin Industries has promised to deposit a week's pay in workers bank accounts next Tuesday but holiday pay and redundancy payments are far from certain.

National Distribution Union president Robert Reid who was at the meeting in Greytown yesterday that closed the doors on the 65- year-old apparel manufacturing company said it was the " worst possible outcome for the workers."

"Not only have they lost their jobs, they walked away today with no money."

Mr Reid said regardless of the provisions of their employment contracts Bouzaid and Ballaben staff were subject to liquidation procedures and because of that a cap of $16,424 had been imposed on future payouts.

"This would be holiday pay and redundancy payments combined and depends entirely on the value of assets being liquidated from Bouzaid and Ballaben alone, not including the parent company.

"It would be from the sale of things like sewing machines and any unsold garments now in the hands of the receiver.

"Payouts would not include any money that may come from the sale of the buildings or land as they are under a different covenant, being Lane Walker Rudkin North Island Property Ltd."

Mr Reid said it was conceivable, though unlikely, the redundant workers would get no more than a single week's pay, paid to them next Tuesday.

"I think that's unlikely but our real worry is that they will get paid redundancy only on 20 cents in the dollar, or one cent in the dollar.

"It's a nightmare."

The closure of the Greytown factory and Pahiatua outpost were clearly signalled in late April when Lane Walker Rudkin Industries was put into liquidation at the instigation of Westpac New Zealand.

Workers held out slim hopes Bouzaid and Ballaben would remain open and trade its way clear but these hopes were dashed when the receivers organised this week's meetings.

After being told of their fate workers at the Greytown factory said they blamed the dropping of tariffs and Chinese and Fijian imported clothing for Bouzaid and Ballaben's plight.

Some said other factors hadn't helped, such as the disappearance of "rag trade trained managers" and the loss of major contracts such as Glassons.

It had been hoped a contract to supply shirts to New Zealand Police would save the day but, although the shirts continued to be made right to the last, it hadn't proved to be enough.

Bouzaid and Ballaben employed 300 workers in its heyday, at one time being Wairarapa's third largest employer.

James Greenaway, of BDO Spicers, attended the Greytown closure meeting yesterday but would not comment to the media.