While farmers are reaping higher returns from wool for carpet manufacturers it’s the opposite for workers in the carpet industry where the pain of redundnancy is being felt. 

FIRST Union general secretary, Robert Reid, says high wool prices are making wool-based carpets too expensive and some carpet makers are switching to synthetics.

“As wool climbs it is putting workers out of work in New Zealand.”

Yarn and carpet maker Cavalier has made 22 workers and some management redundant at its Wiri, Napier and Whanganui mills.

And Norman Ellison Carpets, 70 per cent owned by Cavalier is making 20 workers redundant at its Onehunga yarn mill.

Mr Reid says a range of factors have been making life tough for the carpet making industry and he likens it to what has been happening in the domestic wood processing sector.

“Quite a few workers have lost their jobs when companies went on to shorter weeks during the financial crisis a couple of years ago. It’s a combination of the wool price and a combination of the low number of new house builds in New Zealand.”

Robert Reid says the government needs to take action to deal with the high kiwi dollar and adopt a strategic approach to sourcing domestic wood and textiles for the Christchurch rebuild.

He says what is happening in the wool industry is very similar to what is happening in New Zealand wood processing. The union has been dealing with a rash of closures and redundancies in wood processing plants in the last few months.