Event Cinemas lay off 65 staff

Thursday, 11 June 2020

Top Town Event Cinemas closed during the lockdown and is now shedding workers.

New Zealand's largest cinema chain is to lay off 65 workers, a move condemned by Unite Union.

Cinema organiser for Unite Hannah Shelton Agar said at least 65 union members were losing their jobs at Event Cinemas in Auckland, Wellington, Whangarei and Tauranga, and the company had also reduced staff hours by an average of 50 per cent.

She said some workers were chosen for redundancy before the feedback window closed, and Event had refused to change its proposal despite the extension of the wage subsidy scheme.

“We’re furious that they have continued this process. They should have put this whole thing on hold in order to fully consider the new support the Government was offering.

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Event Cinemas plans to reopen in the next two weeks, but says the impact of coronavirus is forcing it to reduce staff.

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“They're choosing to put people out of work unnecessarily, it’s premature, and it’s cruel.'

Hoyts cinemas across the country will be open this weekend.

Shelton Agar said that by the end of the second wage subsidy, cinemas would be getting back to usual business with blockbuster content to show.

'Redundancies may not even have been necessary if they had just waited.”

Event Cinemas first proposed restructuring on May 13 when they asked staff to express an interest in voluntary redundancy, dropping their hours or moving to casual contracts.

Shelton Agar said Event received $2.7 million in wage subsidies and it was expected to apply for the wage subsidy extension for staff remaining after the redundancies and reduced hours had taken effect.

Event, the largest cinema operator in New Zealand, said it would be reopening over the next two weeks in preparation for the school holidays, but the impact of coronavirus would continue beyond the eight-week wage subsidy extension period.

An Event spokesperson said this was due to the immediate local impact of Covid-19 and the delayed release of major films globally, so it needed to 'reset' its operations.

'The restructure process was a full and fair one, with no decisions made prior to the feedback period concluding, and 50 of the 65 Unite members requested voluntary redundancy.'

Shelton Agar said Events' competitors, Hoyts and Reading cinemas, had so far not indicated they were seeking to restructure or lay off staff.

Hoyts cinemas have announced all its cinemas across the country will reopen from Friday, June 12.

This follows the successful re-opening of Hoyts Christchurch cinemas, EntX, Riccarton and Northlands late last week.