PFBDF | Quote | Chart | News | PowerRating -- Australian company Pacific
Brands Ltd (ASX:PBG) has defended its decision to cut over
1,200 jobs and praised the performance of its chief executive,
Sue Morphet.
Speaking at the clothing manufacturer's annual general
meeting on Tuesday, chairman James MacKenzie said the decision
to outsource the company's clothing manufacturing overseas was
a difficult one.
"While the rationale of making so many people redundant was
plain, it didn't make the decision any easier or more
palatable," Mr MacKenzie said.
"Many of these people have been with us for decades and have
made an important contribution to the development of Pacific
Brands."
Employees who have been made redundant are and will continue
to receive retraining and re-skilling, Mr MacKenzie said.
Redundancy notices had been given up to 18 months ahead of
time, well ahead of the legal requirements.
Much of nation-wide attention Ms Morphet attracted as a
result of the decision to cut the workforce was unfair, he
said.
"In doing her job, and doing it extraordinarily well,
involving extraordinarily difficult decisions - Sue took
enormous personal attention - much of it unwarranted and
unfair.
"Have no doubt, while they were tough decisions, they were
the right decisions."
Mr MacKenzie also said the company's dividend policy would
be reviewed at the current year's half and full year points.
Pacific Brands suspended its interim and final dividends for
fiscal 2009.
The company, owner of clothing bands including Bonds,
Berlei and Holeproof, announced a restructure in February to
address costs, debt and what it deemed a complex business
model.
Aside from the job cuts, it will also see several brands
discontinued, merged or divested.
Mr MacKenzie said there still was work to do on the process,
but already the company had a lower cost base, stronger balance
sheet, and a more agile business.
In his speech to shareholders, he also addressed concerns
about shifting its manufacturing to Asia.
"I would like to assure you that Pacific Brands, like most
other major wholesalers, has been importing from Asia for more
than 50 years," Mr MacKenzie said.
"We will continue to work closely with our supply partners
to ensure all our products and fabrics manufactured offshore
maintain our high quality standards."
Ms Morphett will address the meeting later on Tuesday.
(AAP)lm
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