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More job losses in timber industry


The Tangiwai Sawmill has today laid off another 44 staff, prompting the union representing workers in the industry to demand government intervention.

Niko Kloeten
Tue, 18 Jan 2011

The union representing workers in the wood industry has called for government action after 44 redundancies were announced at the Tangiwai Sawmill, the latest in a string of job losses in the sector.

WPI has reduced its Tangiwai Mill workforce by 80, including today’s 26 voluntary and 18 compulsory redundancies.

This follows the mothballing of its Prime Sawmill in Gisborne and 26 job losses at Carter Holt Harvey’s Kawerau Sawmill, both announced late last year.

Robert Reid, general secretary of the National Distribution Union, said other companies also wanted to meet with the union to discuss scaling back production caused by the economic issues confronted by the industry.

But he said that as the industry laid off workers, the Minister of Forestry David Carter was missing in action.

“Many of the industry problems that have been identified to NDU are a result of government macro-economic policy settings, rather than efficiency or productivity issues in the industry itself,” Mr Reid said.

He re-iterated his call from December 16 last year for the government to convene an urgent meeting with industry and unions to see what can be done.

“The price of raw logs is going up and up, but the price at which New Zealand can sell processed timber is going down. This, together with the high NZ dollar puts the value-added strategy at serious risk.”

“One of New Zealand’s major export industries is in crisis. It is not acceptable for David Carter to sit back. It is time he came off holiday mode, rolled his sleeves up, and addressed the job losses in the industry.”

Mr Reid said that he had written to the minister today asking him to do this. 

Niko Kloeten
Tue, 18 Jan 2011
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More job losses in timber industry
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