PMP axes 67 staff, Clayton Victoria

Decline in print volumes leads to 67 sackings at PMP’s Clayton site.

Employees arrived at work today, 16 April, unaware that many of their jobs were to be terminated immediately. According to newly appointed chief executive officer, Richard Allely, (pictured) shrinking print work in a deteriorating market meant that PMP had no need for so many staff.

“While PMP has sought to avoid redundancies through other initiatives it was left with no alternative at this time,” he said.

In a statement, the company said that it hopes the reduction in permanent employees will “reflect a more appropriate match of labour to production and will not have any adverse impact on PMP print’s customers.”

PMP estimates it will incur an additional $4.5 million in redundancy costs for the 2009 financial year. Given the decline in print volume in the second-half of the 2009 financial year, PMP now expects its second-half earnings to be below its first-half results while the full-year debt remains on target for $200 million.

This is not the first time this year that PMP has reduced its workforce. The Clayton sackings follow on from closures in Queensland and South Australia in February.

According to Steve Walsh, federal secretary for the printing division at the Australian Manufacturing Workers Union, these on-going redundancies are placing an enormous strain on the industry.

“It will be extremely difficult for these people to find work,” he said. “There have been a range of people laid off lately and what worries me is that when the good times roll around again we won’t have the skilled staff to meet that demand. Companies need to think of this.”

Walsh, and other members of the AMWU will be meeting with PMP soon for “a full and frank discussion.”