EXCLUSIVE: PMP to shut down Sensis printing plant

PMP is responsible for production of the entire Telstra directory catalogue of Sensis, and is slated to print 30 million White and Yellow Pages directories every year across its two sites at Chullora, Sydney and Clayton, Melbourne, until 2009.

Brian Evans, the new CEO of PMP, has confirmed his company is currently in discussions with Sensis to shift production of the entire contract to a single site. This move will result in the closure of the other directories plant, leading to job losses of approximately 100 people, according to union estimates.

“We believe that the amount of work we currently do for Sensis could be performed in a single directories plant instead of the two,” says Evans.

“PMP believes it will achieve significant savings in cost and efficiency by making that decision, and printing is a competitive world so we always have to look for those opportunities.”

Evans insists the decision is driven solely by the company's desire to rationalise its operations and cut the cost of printing, and assures the industry that production on the Sensis catalogue will not be shifted offshore.

“The discussion is based on the volumes remaining similar to what they are now. We are looking for a longer term commitment from Sensis, so we are confident the work will stay in Australia,” says Evans.

Details as to which of the two plants will close have not yet been revealed, but PMP claims the decision will be driven by which plant is best equipped to perform the volume of work, with the age of the printing technology and the quality of the existing workforce named as the influencing factors.

“There is no timeframe at this stage as it is still early days for us, but it is being looked at,” says Evans. “We are currently in discussions with the client, but no debate has yet gone into what the preferred site will be.”

Union claims Chinese print prices a factor

While PMP officially attributes the impending closure to a cost and efficiency drive, this claim conflicts with emerging reports that suggest Sensis demanded a cut in the cost of its flagship directories of 20 per cent, with an additional 40 per cent decrease on the smaller books.

According to the AMWU, demands from Sensis that PMP match the cost of Chinese print are indeed a factor in the mix.

Mark West, assistant secretary for the printing division at AMWU, confirms the union is currently in negotiations with PMP. He says the company is evaluating both plants, and is expected to deliver a decision fairly soon.

“The union is seeking a national meeting with PMP to discuss some of the issues relating to its directory divisions,” says West.

“We're not happy with what appears to be a bidding war between the two sites, and as far as our members are concerned, we will not be compromising wages and conditions in order to match alleged circumstances in China.”

West says he is dismayed over the alleged behaviour of Sensis, and emphasises the possibility that other services from the telecommunications provider might be shifted offshore in the future.

“Obviously Telstra has its own agenda, but we don't believe it should be behaving in this manner. The company derives huge amounts of revenue from Australia, and it should be putting something back in terms of jobs.”

PMP purchased the Chullora directory site owned by McPherson's for $16 million in 2004, with the deal stating that Australia's largest printer would retain the contract for the entire Sensis catalogue until the end of 2009.

Last year it was revealed that PMP has taken an even greater role in the production of the Yellow Pages, with the company securing an end-to-end contract to provide 100 per cent of the production, graphic design and data entry services on the flagship telephone directory.

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