23 Jun 2009

NZ staff axed after takeover of media company

3:25 pm on 23 June 2009

More than 40 of the 55 employees at a media monitoring company have found themselves without a job within four months of an Australian takeover.

Only 13 people have been offered full time positions to remain with Chong Newztel.

All 55 staff were originally offered three-month contracts, while the new owner Media Monitors determined areas of duplication between the New Zealand operations of the companies.

Forty-two short-term contracts are not being renewed.

The Commerce Commission gave clearance for the takeover in February, after a four-week investigation concluded it would not substantially lessen competition in the media monitoring market.

The commission says it cannot consider employment implications in the clearance regime for proposed mergers and acquisitions.

In its application to the commission, Media Monitors said it saw an opportunity for cost savings if the acquisition went ahead.

Chong Newztel was established in 1952 and first changed hands four years ago.