More aussie icons go offshore... Dettol and Mortein

[Jim Goose]

Jobs go as iconic products shift offshore

Updated February 01, 2012 18:01:25
Dettol Photo: The iconic products will be made offshore after July. (Flickr: Nick Wheeler)
Map: Ermington 2115

Iconic fly spray Mortein and disinfectant Dettol will stop being made in Australia from July.

Reckitt Benckiser, which has been making the products since 1963, will axe 190 manufacturing jobs at its Ermington factory in Sydney's north-west.

The products will be made offshore but a sales force of 300 people will be retained.

Workers have been offered redundancy packages under their current agreement.

Australian Manufacturing Workers Union state secretary Tim Ayres says it is a significant blow to families.

"This is a decision that's been made in the middle of the night, in secret, and it's a terrible shame for Australian manufacturing capability," he said.

"Reckitt Benckiser holds itself out as a great Australian company with iconic Australian brands.

"It's going to be very difficult to maintain those iconic Australian brands when Mortein and Dettol are manufactured in Korea and China and overseas."

Mr Ayres also criticised the handling of the announcement.

"There's been no discussion, no contact with the AMWU or with staff," he said.

"Staff have been given no opportunity to deal with the productivity challenges that the company claims have helped it make its decision."
Top priority

However, Reckitt Benckiser Australia chief executive Lindsay Forrest said looking after staff was a top priority.

"This announcement is understandably distressing for many of our team," he said in a statement.

He said the market had changed significantly since local operations began in 1963.

"Australia's geographical distance from other markets and our relatively small domestic market has made it increasingly difficult to embed our West Ryde operations into these global arrangements," he said.

Mr Forrest said production would move to other global manufacturing sites in Europe, Asia, South Africa and North America.

Third-party manufacturers will also be used to a lesser extent in Australia and New Zealand.

Reckitt Benckiser's consumer contact centre will remain in Australia.

http://www.abc.net.au/news/2012-02-0...fshore/3805304