The redundancies of the five — on the operational side of Gorton Timber Co — were down to “significant industry challenges” leading to a reduction in demand for finished timber products for construction.
The change leaves the company with 23 staff, down from 28.
A spokeswoman for the firm said the job losses affected several long-standing members of staff, in what had been a difficult and emotional process.
“The company underwent thorough internal discussions and explored various options to retain staff and keep as much work in house as possible.
“Additionally, the company has scheduled a longer-than-usual annual close-down period, running a small skeleton crew as required. This extended close-down is in response to the seasonal reduction in orders and allows the business to better manage resources and operational costs.
“Despite these proactive measures, market conditions continued to impact the business, leading to the eventual decision to proceed with restructuring.”
She said there had been a downturn in the timber industry both domestically and internationally.
“[There has been] a decrease in demand for finished timber products, particularly in the commercial and residential construction markets, both in New Zealand and overseas. The ongoing reduction . . . compounded the pressure on Gorton Timber’s operations. These factors, coupled with rising operational costs, required the company to streamline its workforce …”
Gorton business development manager Kyle Gorton said the firm had worked with the Ministry of Social Development to ensure a smooth transition for affected staff.
“At Gorton Timber, we deeply value our team, and we have worked hard to ensure support was available throughout this challenging process.
“We engaged an HR business partner and the Ministry of Social Development early on to provide comprehensive support to all employees affected … We recognise that these changes have been tough, but they were necessary for us to remain competitive in a challenging industry.”
Some staff had taken up an offer of casual contracts, the company said.
A local contractor, who did not wish to be named, said the downturn was affecting several South Otago forestry companies at present.
“I think it’s kind of spread right across the industry and there’s one or two forestry companies who aren’t even logging at the moment.
“[Gorton] went through a period where they had to take on more staff because they were flat-out busy, and now things have quietened down quite suddenly I suppose the business has to act accordingly.”
