NZ Post

NZ Post says job cuts needed to stay competitive

New Zealand Post says it needs to make redundancies so the business can stay competitive in a tight market.

Radio New Zealand,

14 February, 2013

The company announced on Thursday it is axing 100 workers in Wellington and Auckland, saying the job losses are the result of an upgrade of its printing systems.

The New Zealand Post-owned print and mailing house Datam will close its plant at Petone near Wellington at the cost of 75 jobs, and some Auckland roles.

However, 30 new jobs will be created at its Christchurch plant.

Spokesperson John Tulloch said on Thursday the decision has been driven by new technology which can do more work with fewer workers and the company is working to relocate employees where possible.

The Engineering, Printing and Manufacturing Union said the redundancies have come as a shock to workers.

Postal sector organiser Joe Gallagher said the union has serious concerns about the state of the job market for its members.

Sign of the times - Joyce

Economic Development Minister Steven Joyce says it is always a concern for people who lose their jobs, but more lay-offs reflect the changing state of the economy.

As well as the New Zealand Post job cuts, Contact Energy said on Wednesday it plans to cut more than 100 positions in the face of flat demand for electricity.

Mr Joyce said on Thursday the situation is reflection of the state of international and domestic economies.

"We're getting lower levels of growth than we have historically, and that's because of the global financial crisis. We are seeing growth in some areas, but we're seeing job losses in other areas as well.

"So it's not easy, it's still challenging but actually anybody who suggests they could wave a magic wand and make it disappear is, frankly, just having you on."