In August 2013, Dunedin-based Donaghys was reportedly bucking trends in the south by hiring 16 more staff.
It had just closed its Melbourne and Invercargill operations and relocated them to Dunedin.
Yesterday’s news that the 138-year old rope maker will cut about 30 jobs has come as a bolt from the blue for the 70 staff.
Ironically, given the latest moves to ease the value of the New Zealand currency, managing director Jeremy Silva lays the blame on the high value of the dollar.
This was despite initiatives to find new markets such as the dairy industry, which may no longer be such a sure bet either.
Mr Silva is reviewing export production and proposing to reduce or discontinue production from five of the 16 manufacturing lines at its Dunedin factory, while establishing four new manufacturing lines.
Operations affected include manufacturing of selected twines, ropes and braids mainly for export. Customers in New Zealand will not be affected, he says.
The developments have prompted unionists in Dunedin to question the depth of the “rock star” economy.
Chris Hutching
Thu, 02 Oct 2014
Thu, 02 Oct 2014
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High dollar prompts Donaghys layoffs
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