Mill workers pessimistic about future

Last updated 17:23 21/10/2013

Relevant offers


Finance diary 2000 broken hopes at failed Wellington call centre Hawke's Bay syrah wins top trophy at Air New Zealand Wine Awards Health drink SOS Hydration seeks to raise $2.3m in crowdfunding campaign AFT Pharmaceuticals NZX and ASX listing to fund growth Auckland's Grow North innovation ecosystem one step closer to reality Govt must act on unsafe chicken, Greens urge Expedia's New Zealand boss speaks out on competition fears, tax structure Surge in 10-year passport applications expected Plans to buy Hawera carpark and rebuild supermarket

Workers at the Tachikawa Forest Products mill in Rotorua, which has been put into receivership, are disheartened, annoyed and pessimistic about their future, says First Union wood secretary Rawiri Daniels. 

Speaking after a meeting of affected workers, Daniels said the mood was sombre.

''They're pessimistic about the future. It'll hit home in the next few days,'' he said.

One employee Kerry Wiringi told the Rotorua Review the closure was not unexpected but was still a blow.

''We could see it coming.''

Staff knew there were problems when fewer and fewer logs came through the mill and when they were asked to take days off, he said.

First Union general secretary Robert Reid said receivers Kordamentha had to sell the business and there were two realistic options; it could be acquired as a going concern, or acquired for the plant and land, meaning the business would close.

He advised staff to begin searching for alternative employment.

''Don't wait and hope,'' he said.

Under Companies Act regulations, workers are deemed to be preferential creditors entitled to a maximum of $20,040 in wages, holiday pay and redundancy.

Without a buyer that sum could be reduced to as little as 50 cents in the dollar, Mr Reid said.

First Union has held meetings with local MP Todd McClay and new Rotorua Mayor Steve Chadwick, who described the news as a ''devastating blow.''

"'They've all got families. These are guys who want to get up and go to work. At the moment the economy is flatlining here, so it's not as if there are other [employers] going to grab them,'' she said.

''There seems to be a demand for processed timber and I think that's what we've got to get our heads around. Is there a possibility to keep trading or not?''

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content