Pacific Brands sackings 'won't be the last'

Responsible for iconic brands such as King Gee, Yakka, Bonds, Jockey, Dunlop Volley and Holeproof, Pacific Brands refused overtures from the government three weeks ago to reconsider plans to cut jobs.

The decision comes despite the company having received $10 million a year under the government's textile clothing and footwear (TCF) industry structural adjustment program.

Rudd ‘disappointed’

Prime Minister Kevin Rudd said in parliament the devastating and distressing news for the workforce was extremely disappointing for the government.

"Pacific Brands' decision is bad news for the TCF sector and it  is bad news for the economy," Mr Rudd said.

He said he understood the company had told Industry Minister Kim Carr that nothing could be done to reverse the decision.

Senator Carr, Employment Minister Julia Gillard and Employment Participation Minister Brendan O'Connor expressed their disappointment but warned there would be more to come.

Senator Carr told a news conference that he had heard of Pacific Brands' job-shedding plans three weeks ago and contacted the company directly.

Pacific Brands one of many

"I spoke to the chairman of the board and I specifically asked was there anything further we could do to get the company to change its mind, and the answer they have given me is 'No'," Senator Carr said.

He would not reveal the identities of any other companies the government had consulted recently and whether they were considering similar job cuts.

"We are in a position now to say that there are many, many companies that are facing an acute liquidity crisis," Senator Carr said.

It was the result of a fall in demand, a story not uncommon throughout the manufacturing sector as a result of the economic downturn.

"This will not be the last day in which we have to deal with very disappointing news like this," Senator Carr said.

Help for the workers
 
The government said it would offer intensive job search assistance available to all retrenched workers to the Pacific Brands workers.

They would also be eligible for a $1,350 account set aside for TCF industry under its structural adjustment program to help retrain sacked workers.

Senator Carr expressed confidence in the future of the industry, which employs 40,000 people around Australia.

The government is considering a review of the industry by Professor Roy Green and Senator Carr said it would be dealt with in the context of the May federal budget.

Workers to fight

Pacific Brand workers will first fight to defend their existing jobs before taking up government assistance.

A shattered workforce met outside Pacific Brands' Coolaroo plant saying they will fight for their jobs.

Coolaroo in Melbourne's north is one of seven plants around Australia that will close down over the next 18 months.

The Textile Clothing and Footwear Union Pacific Brands has accepted 17 million dollars from the federal government over the past two years to keep the business running and should have an obligation to keep jobs in Australia.