Impacted workers at Kinleith Mill near Tokoroa are “upset” and “angry” at a proposed plan to shut down paper production, which could see 230 jobs go.
The mill’s owners, Oji Fibre Solutions, told staff yesterday it was proposing to cease paper production by June next year, and focus on manufacturing pulp. Affected employees have until January to provide feedback.
This morning, Breakfast spoke to Ian Farrell, who has worked at the mill for 38 years and is among those who may lose their jobs next year.
He said many people were “upset” following yesterday’s announcement.
“[I] talked to them late into the night, and they really don’t know what they’re going to do.
“We’re talking about people in [their] early 40s, have got 20 years of their life left working, and they’re struggling to know what they’re going to do and how they’re going to proceed under the current structure that the company has put forward.
“I’ve been here most of my working life. I came here when I was 26, and I’m 64. That’s pretty much all I’ve known for the last 38 years.”
Farrell said the closure of the mill’s paper production would be a “hell of a blow” for the Tokoroa community.
“We have a lot of local people who work at the mill, and the community rely on those people having an income.
“The whole thing is going to be a struggle.”
Farrell hoped workers could give saving paper production and the many jobs that came with it a “red hot crack”.
“I can understand the difficulty the company are going through, but it seems to be just to shut it down and move somewhere else, it seems to be a hard pill to swallow for us.”
Union calls on Government to step in
Also speaking to Breakfast this morning was Joe Gallagher from the E tū union. He said many members were “pretty angry” and “hurt”.
“Kinleith is the heartbeat of the south Waikato region, and it’s a further blow for the provincial New Zealand workers.”
Mill owners Oji Fibre Solutions propose permanently shutting the paper machine, impacting around half the 450-strong workforce. (Source: 1News)
Gallagher wanted to see Oji pause its consultation and called on the Government to access the Provincial Growth Fund to support regional production.
“To see if we can really sit down and have serious consultation, see if we can put together a credible alternative to closing the paper-making capacity.
“We have to think blue skies,” he said.
Gallagher said one of the concerning problems the industry in New Zealand faced was the price of logs reportedly being too high, which he called ironic.
“We’re in the middle of a forest, but they’re saying it’s too expensive to buy wood.
“You’ve got thousands of logs sitting on the wharf in Wellington, being exported. There must be another way to save the mill and the Tokoroa community.”
In a statement yesterday, Oji chief executive Jon Ryder said the decision was driven by paper production becoming “unprofitable”.
“Paper production at Kinleith Mill has suffered significant losses for several years, and we see no prospect of the situation improving,” he said.
Gallagher believed the mill’s problems date back to when Oji first bought it and said several mistakes were made.
“They bought the mill, but they didn’t buy the forest, so they didn’t have their own supply, so I think that was mistake number one.
“Mistake number two is to think that you have to be proactive with your maintenance and make sure that you’ve got a steady capital spend year on year.
“Sure, power and gas prices and other things are hurting them, but these workers are some of the best in the country. They do the best they can with what they have.”
The mill’s downsize is just the latest in a string of other closures across New Zealand.
In September, Oji confirmed its paper recycling mill in Auckland’s Penrose would close in December, leaving 75 people jobless.
That announcement came after Winstone Pulp confirmed its plans to shutter the Tangiwai Sawmill and Karioi Pulpmill in Ruapehu, resulting in the loss of 230 jobs.
When asked about the industry’s state, Gallagher said, “It’s a sad day when we become just a country of importers.”
Regional Development Minister Shane Jones called the mill’s downsizing a “hideous” outcome and said he plans to meet with Tokoroa’s mayor.
“I doubt we’re going to see Tokoroa as buoyant again for quite some time, but I’m keen to ensure that I play a constructive role.”
“No doubt one of the contributing factors are the stupendously expensive power prices but no, it’s a bleak day for the people of Tokoroa.”
As the Associate Minister for Energy, he said the Government was looking to change the settings of the power industry so that energy prices would be cheaper than they are now.
