Employees from PMP and IPMG's workforce are anxiously awaiting news of redundancies and layoffs after the mega merger was announced, many alleging they have been left in the dark.
Upon announcing the merger, IPMG executive chairman Michael Hannan said that some equipment would certainly be retired. Analysts fully expect job shrinkage.
“It is the shared intention of the parties to respond to industry challenges by reducing under-utilised and older press and bindery fleet capacity. It will enable us to bring the best aspects of our firms together to more efficiently deliver world-class services and products” says Hannan.
In a presentation delivered to investors, PMP described several ‘synergy benefits’ that would arise through the merger, including labour savings from better utilisation and rationalisation, and savings from rationalising operations across repairs and maintenance, power and utilities and a range of other manufacturing and operational expenses.
[Related: PMP shares soar after merger announcement]
ProPrint spoke to several employees from PMP and IPMG who claim they have been excluded from any conversation about redundancies, many fearing their jobs will be in jeopardy following merger approval.
“The only information we have been told on the whole merger is what we read in ProPrint articles and the PMP investors page. No one, not even our management, seems to be able tell us anything,” says one IPMG staffer.
“What happens to the workers is a question no one seems to be able to answer. Most of us want out,” another says.
Staff were expressing their concern about their futures on the ProPrint Facebook page.
PMP employs 1248 staff members as of 2016, a number that is shrinking each year from its 2159 employees in 2012. IPMG also has around 1200 on its books.
PMP shareholders are set to vote on the proposed transaction on December 16. Pending shareholder and ACCC approval, the merger will go ahead from early January.
More to come.
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