FED:RB closes with 190 people to lose jobs

AAP General News (Australia)
02-01-2012
FED:RB closes with 190 people to lose jobs

SYDNEY, Feb 1 AAP - Almost 200 workers will lose their jobs after the makers of Mortein
and Dettol announced plans to shut down its only Australian manufacturing facility in
Sydney.

Reckitt Benckiser (RB), a multinational household and healthcare manufacturer, on Wednesday
announced plans to restructure its operations.

Around 190 employees, mostly production and maintenance workers, will be left without
a job when manufacturing stops at its factory in Sydney's northwest by July.

The Australian Manufacturing Workers Union (AMWU) said Reckitt Benckiser had advised
them late Tuesday afternoon that it would close the factory after almost 50 years in operation.

"This is a decision that's been made on the middle of the night, in secret, and it's
a terrible shame for Australian manufacturing capability," AMWU state secretary Tim Ayres
told reporters in Sydney.

"There's been no discussion, no contact with the AMWU or with staff.

"Staff have been given no opportunity to deal with the productivity challenges that
the company claims have helped it make its decision."

But RB Australia CEO Lindsay Forrest said the market had changed significantly since
local operations began in 1963.

"Australia's geographical distance from other markets and our relatively small domestic
market has made it increasingly difficult to embed our West Ryde operations into these
global arrangements," he said in a statement.

Mr Forrest said production would move to other global manufacturing sites in Europe,
Asia, South Africa, and North America.

Third party manufacturers will also be used to a lesser extent in Australia and New Zealand.

RB's consumer contact centre will remain in Australia.

Mr Forrest said looking after the staff was a top priority.

"This announcement is understandably distressing for many of our team," he said.

But Mr Ayres said he was concerned about the future for the affected workers.

"This is the human cost of when a big multinational company decides it's going to cut
off its Australian arm," he said, adding that products like Mortein and Dettol will be
now be manufactured offshore.

Reckitt Benckiser also makes Airwick, Aerogard, Easy Off, Dettol and Harpic in Australia.

Workers have been offered redundancy packages under their current agreement.

AAP ra/tr/mjs/jlw

KEYWORD: RB

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