Delta units be­ing axed

20 Cen­tral jobs to go

Central Otago Mirror - - CENTRAL NEWS -

In­fra­struc­ture spe­cial­ist Delta has con­firmed it will exit its Cen­tral Otago civil con­struc­tion con­tract­ing busi­nesses re­sult­ing in 20 job losses. The Cen­tral Otago wa­ter and civil busi­ness unit will close in Septem­ber. The com­pany will also close the Dunedin wa­ter and civil busi­ness unit in Au­gust with 40 job losses and the South­land wa­ter and civil busi­ness unit will close in Jan­uary with 16 job losses. Delta chief ex­ec­u­tive Grady Cameron said the busi­ness would phase it­self out to avoid fur­ther losses and to re­duce its risk pro­file in line with the re­quire­ments of its share­holder, Dunedin City Hold­ings, to gen­er­ate sta­ble cash flows. Mr Cameron said there were no al­ter­na­tives to clo­sure pro­vided from the con­sul­ta­tion with its Dunedin, Cen­tral Otago and South­land civil con­struc­tion em­ploy­ees. "Re­gret­tably, there is now no vi­able al­ter­na­tive other than to close the busi­nesses and exit the civil con­struc­tion con­tract­ing mar­ket,’’ he said. ‘‘We know that the de­ci­sion is un­wel­come and has a di­rect im­pact on our em­ploy­ees and their fam­i­lies.’’ ‘‘We . . . have made con­sid­er­able, on­go­ing ef­forts ... to turn around loss­mak­ing civil con­struc­tion op­er­a­tions in­clud­ing a man­age­ment re­struc­ture.’’ The com­pany lacked longterm main­te­nance con­tracts to un­der­pin con­struc­tion pro­ject work to com­pete against national and multi­na­tional com­pa­nies. The Christchurch civil con­struc­tion con­tract­ing busi­ness was closed in June and al­most all the em­ploy­ees had found al­ter­na­tive em­ploy­ment.

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