Pacific Brands' decision to sack hundreds of Wollongong workers and move its clothing manufacturing operations offshore has led to a massive turnaround in the company's profits.

Shares in Pacific Brands surged 15 per cent yesterday after the announcement of a $52.7 million net profit for the 12 months to June 30, compared to a loss of $234.5 million in the previous corresponding period.

The news came as a slap in the face to the members of the 280-strong Illawarra workforce who were told last year they were no longer needed.

The Melbourne-based company's revenue rose 11 per cent to $1.74 billion.

"Earnings are expected to benefit from the impact of offshore sourcing and improved foreign exchange rates," it said.

The largely female workforce of Bonds Unanderra and KingGee Bellambi were devastated in February last year when told of Pacific Brands' decision to close both factories.

More than 80 KingGee staff were laid off; 200 workers followed at Bonds in March this year.

South Coast Labour Council secretary Arthur Rorris said the profits confirmed the belief that "big business will always look after itself".

"The chief concern of Pacific Brands, like other companies, is to satisfy their shareholders, not the people of this region," he said.

Textile, Clothing and Footwear Union national secretary Michelle O'Neil said the profits would only fuel the frustration of retrenched workers.

"After all their years of hard work and loyalty to the company ... the decision to end these workers' employment wasn't based on an unprofitable company, just one that wanted greater profits," she said.

Ms O'Neil said the effects of the lay-offs were still being felt across the region.

"Some have found other work, but the majority of [those] have only found short term, casual and insecure work," she said.

"It's not the same as having an ongoing, permanent job."

The union is calling for state and federal governments to intervene with policies which support companies manufacturing in Australia.

"People want to be able to buy good quality products that are made ethically here in Australia," she said.

"The more that products move offshore, the less we know about how those products are being made and how those workers are really being treated."

Interestingly there were 2 guys from Pacific Brands at my table at the Australian Institute of Directors lunch last thursday.

I am sure you would have loved them Imcrookonit.

They said they expect a considerable upturn in the next 3 years and that they took a bit of a storm over the off-shoring but in the long run it will work.

Yes and I guess the workers just wanted a job.  Oh well it looks like no one can complain, when workers line up at centrelink.

crook -
Quote:

......of a $52.7 million net profit for the 12 months to June 30, compared to a loss of $234.5 million.....

so, you'ld have aussie coys lose money ???

Imcrookonit - If you like I can send you the very first textbook from my uni days in economics.

The purpose of a publicly listed company is to 'maximise shareholder return'.

Now are you telling me you would have a company not increase its profits to keep on workers that are costing a lot more than can be done elsewhere?

If so, I hope you don't run a business because you'd be in trouble pretty quickly.

And I suppose this Labor-funding company wanted to expand on it's profit margin also?

http://www.realestatesource.com.au/ubertas-group-to-sell-last-apartments-at-505-st-kilda-road.html


Who are the elitists now?

So what products are we talking about here so we can boycott it? I mean if I gotta buy chinese crap I'd rather not help out backstabbing Australian companies when I do it.

locutius wrote on Aug 26^th, 2010 at 11:43am:

So what products are we talking about here so we can boycott it? I mean if I gotta buy chinese crap I'd rather not help out backstabbing Australian companies when I do it.

How about buying just based on quality and price matrix.

I will buy based on that alone. Who made it, where it comes from etc etc is all a nonsense.

I'll happily buy imported goods if it is a better product. This "Buy Orstraaaayan" nonsense cuts no ice with me.

Providing they dont break the law, directors and management must put the interests of the shareholders above those of the workers.

Simple really.

Well just look at US unemployment .. if they have no jobs then who care about those cheap offshore products ..