Manufacturer of consumer lifestyle brands Pacific Brands Ltd
(ASX:PBG) has defended its decision to cut 1,200 jobs by sending its manufacturing offshore and says much of the criticism CEO Sue Morphet received has been unwarranted and unfair.
Chairman James MacKenzie says that while the rationale of making so many people redundant was plain, it didn’t make the decision any easier or more palatable.
Mr Mackenzie says the company has been working with the Textile Clothing and Footwear Union of Australia to develop, fund and implement an extensive retraining program for all manufacturing employees being made redundant.
Pacific Brands also says it gave redundancy notices to employees up to 18 months ahead of time, while legally they were only obligated to give six weeks.
Mr MacKenzie made mention of the intense scrutiny that CEO Sue Morphet attracted as a result of the decision to cut jobs.
He says in doing her job she took enormous personal attention, much of it unwarranted and unfair, saying that, while they were tough decisions to make, they were the right decisions.
Pacific Brands posted a $234 million loss in 2009 following four years of profits.
