Smelter job losses expected

The largest employer in Southland has revealed several cost-cutting measures to its staff after meetings this week. The partner of a New Zealand Aluminium Smelters worker at Tiwai Point said staff were told this week the company had lost a "very big" order. The partner said staff in the area where her partner works had been required to hand in their company cellphones, which involved more than 500 phones. Staff had also been told Comalco intended to form a "mod squad" of enthusiastic, committed employees who would run the plant. Some jobs had already been disestablished and staff were expecting that many would be made redundant, the partner said. Nine hundred people are employed at the smelter. Yesterday, general manager Paul Hemburrow did not return calls. New Zealand Aluminium Smelter spokeswoman Diane Collier, in Australia, said the company was continuing to implement a range of cost-cutting programmes across the operation. "These are ongoing and many came about from employee suggestions. We are monitoring the economic situation closely and as a business may need to implement additional measures to ensure the operation is positioned to weather the challenging economic situation. "If we make any significant changes to the business, we will be talking to our employees and key stakeholders in the first instance." When asked whether the company had requested the return of the cellphones she would not confirm or deny the information. When asked the dollar figure of savings the company was trying to make in its cost-cutting measures, she was unable to provide an answer. The company should be able to provide answers on Friday on how many staff have opted to take unpaid leave. The company asked staff to consider taking up to two years' unpaid leave as it handles a drop in the price of aluminium.