Wellington, New Zealand, June 22--Feilding, Foxton, Dannevirke and Kakariki, near Halcombe, could have to wait until Christmas for news on whether they will keep their jobs, according to Stuff.co.nz.
The 50-year-old company is reviewing all its operations after being hit hard by a slump in carpet sales in Australia, a halving of its expected profits and a crash in its share price.
The four Manawatu plants employ about 400 people.
Yesterday, the company referred all media questions about the proposed review to its public relations firm, Consultus. The review could take six months.
Staff have received a version of this week's press release announcing the resignation of chief executive Sam Magill, which also reassures them they will be kept informed throughout the review.
The union that represents about 800 Feltex workers across New Zealand, the National Distribution Union, says it is worried about the possible effect of changes in such a large employer on the small communities of Foxton, Feilding and Dannevirke, where its plants are based.
National secretary Mike Jackson says the union wasn't warned about this week's announcements, and has little information.
"We are most concerned about aspects of the public statement that talk about a review of manufacturing operations and staffing levels. We want to know that they will consult with us."
The union has 132 members in Foxton, 146 in Dannevirke and 75 in Feilding.
Another union, which represents about 40 workers at Feltex's Kakariki wool scour, says the review of production and the location of plant is "rather ominous."
Meat and Related Trades Workers Union of Aotearoa organiser Paul Wintringham says the union has no more information on possible closures or redundancies than has already been publicly reported. "But we would be surprised if it affected the wool scours."
Wool scouring is the first step in the process of producing raw material for carpet factories.
Wintringham says collective agreements were reached with the company this year, and that the company has a record of treating its staff fairly.
The NZ Engineering, Printing and Manufacturing Union, which has 64 members throughout the New Zealand operations, also knows little.
Feltex is one of Foxton's biggest employers, with about 140 staff at its carpet factory. It bought back its landmark building in the town, after years of leasing, in July last year.
It was a purchase that New Zealand chief Ian Barbour said at the time offered staff and the community greater certainty about the factory's future.
In Feilding the company spins yarns and in Dannevirke it runs a yarn and dye house. It renewed long-term leases on both premises last year.
The company's total workforce is about 1,000 in New Zealand and 800 in Australia.
This week, Feltex announced a profit downgrade to $11.5-$12 million in the 2005 year, compared with a prediction of $15-$16 million in April. Its share price fell from $1.50 to 47c.
