Aquaheat makes 30 redundancies

Aquaheat has this afternoon told staff it intends to make 30 redundancies in Wellington as a result of the downturn in construction work in the capital.

The construction services company has cited a projected 13% decline in non-residential construction work caused by increased insurance premiums, additional costs of earthquake strengthening and the effects of public sector cuts on the construction industry.

The EPMU’s national construction industry organiser, Ron Angel, says the redundancies are likely to add to the emerging ‘trades drain’ to Australia.

“There are very few construction projects in the pipeline in Wellington, and with public sector spending drying up this is likely to continue for some time.

“The Wellington region is really starting to struggle. Cuts to public sector spending have hit local businesses hard and it’s inevitable that will be reflected in the construction industry.

“The union will now go into consultation with the company, but with the local industry in the state it is we’re realistic about what we’re going to be able to change.

“We are hopeful redundancies can be voluntary and that people affected can find work on the Christchurch rebuild, but the reality is that for many this will be seen as an opportunity to join the trades drain to Australia.”

Union members at Aquaheat are eligible for redundancy compensation under their collective employment agreement.