Bremworth offers redundancy, redeployment options to cyclone-hit employees

Employees at Bremworth's Napier factory have been given the choice to be redeployed or accept voluntary redundancy as the plant remains closed following Cyclone Gabrielle in February.

The carpet maker said a detailed assessment of the damage to the Napier plant and buildings has been completed, but the insurance claims process is expected to take several months to complete.

The plant's 147 staff are getting pay from insurance proceeds since the fhuman resources, New Zealandctory went offline in February, with Bremwoth saying it remains "very conscious" of their situation.

"The company is aware that team members are looking for more clarity around their future at the Napier plant," the company said in its latest update.

"In response to staff feedback, Bremworth has presented several options to team members that may assist with their personal circumstances and wellbeing, specifically voluntary redundancy or expressions of interest for redeployment to Bremworth's Whanganui plant."

The New Zealand Herald reported that the voluntary redundancy option is extended to 130 employees, while about 20 staff did not receive the offer as they are vital to the company's national operations.

"Since the weather event in February, our priority has been our people. While we do not yet have a definitive view around the future of the plant, we are doing all we can to support them and working through the process in good faith," said Bremworth CEO Greg Smith in a statement.

According to the organisation, it is also extending career and financial advice, as well as emotional support for all employees.

Bremworth's recovery measures

The carpet maker's spinning plant in Napier is among the establishments that were flooded when Cyclone Gabrielle hit in February this year, prompting the company to move some of its production overseas to ensure supply, Stuff reported.

In its latest update, Bremworth said its alternative supply arrangements are "proving successful."

"The new hybrid supply chain model is complementary to Bremworth's existing operations and will insulate the Company from future events that could potentially disrupt operations," the company said.

Bremwort also assured that its insurance payments leave the company in a "strong position" to continue its mitigation and business continuity plans, support affected staff, and meet its ongoing obligations.

"Further insurance payments are expected upon completion of the assessment of damage to buildings, plant and equipment, and the loss of inventory and profit, due to the interruption to the business from Cyclone Gabrielle."