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Lane Walker Rudkin - Source: ONE News -
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Textile manufacturer Lane Walker Rudkin (LWR) Industries Ltd has closed its Pahiatua factory, laying off 19 employees, the National Distribution Union (NDU) said on Friday.
LWR was placed in receivership last month after incurring a substantial increase in bank debt.
Employees at the Bouzaid and Ballaben factory in Pahiatua, 36km east of Palmerston North, were told of their redundancies at a meeting on Thursday, NDU National Secretary Laila Harre told NZPA.
"The workers are devastated. They've been given no notice," Harre said.
"They believe they will be paid for the work they've done up until yesterday, they have no guarantee at all that they'll be getting their holiday pay or redundancy."
Harre said the union had made contact with local government agencies to be sure they would be there when workers were advised.
"They were on the spot and people were able to register with Work and Income and begin that process."
The union had asked the government for assistance in providing ongoing support to the workers through a worker-led process.
"It's much better for workers to help each other through this process than to have outside agencies do it - and we're seeking resources from the government to do that."
LWR employs about 450 other people at textile, hosiery, underwear and garment factories in Christchurch; a garment manufacturer in Greytown; a sock factory in Timaru; and a sports apparel factory in Brisbane.
Christchurch businessman Ken Anderson bought LWR in 2001 and subsidiary Pod in 2007.
Pod, which was not receivership, comprised fabric maker designer Textiles International, clothing designer and manufacturer Michele Ann, and Mollers Homewares, all in Auckland.