Redundancy compensation has been agreed for about 200 employees at an Oamaru wool mill. Operations at Summit Wool Spinners will end on 28 February.
Union representatives say full-time employees will receive a payment of $1000 an part-time employees will be paid $500.
Time off for counselling and certificates of service have also been agreed on.
A skeleton staff of up to 50 could be rehired by the new owner, carpet maker Godfrey Hirst.