By Melissa Meehan
CHAMPION Compressors may have celebrated 40 years of business and unveiled its new national headquarters and manufacturing facility in Dandenong last month, but last week the company made 20 per cent of its staff, including its CEO, redundant.
A source, who does not wish to be named, contacted the Star worried that the redundancies were going unnoticed.
“The CEO of the parent company – Sullair USA visited the plant in Dandenong and made the CEO as well as 20 per cent of the workforce, redundant,” he said.
“They also shut down the successful Engineered Products Division along with its entire staff.”
The source who previously worked for Champion Compressors for a number of years said he felt that the company had been stripped and would probably be sold off within the next few months.
He said there was a round of redundancies in December, but believed that the second round was “completely unexpected”.
“They laid off the CEO, the sales and marketing manager, engineering manager, export manager, engineered product manager, standard products manager, the whole engineered products team (about 10 staff) and another 30 staff nationwide.”
He said a generous redundancy package was provided and staff were told of the job cuts on the same day they were asked to leave. A spokesperson for Champion Compressors released a statement blaming the economic crisis.
“The deepening worldwide economic downturn continues to have an impact on Champion Compressors. As a result, the company is taking steps to reduce costs and remain competitive, including reducing our workforce through lay-offs.”