Gisborne 'feeling the pain' after more job cuts

Meng Foon said the recession was 'just one big flow-on effect' to the Gisborne region. Photo / Sarah Ivey

The primary production region of Gisborne is "feeling the pain" of the recession with another employer slashing staff numbers.

More Gisborne people will be joining the unemployment queue after Richardsons Sawmill laid off half of its staff.

Gisborne mayor Meng Foon said some of the people recently laid off had been working at the same job for 25 years.

He said the recession was making things harder.

"It's just one big flow-on effect to places like Gisborne," Mr Foon said.

The layoffs came on the back of the loss of more than 200 jobs in the region in the last month. Prime Sawmill, food processor Cedenco and several other businesses have downsized.

"Suddenly they get a notice and it's a bit distressing for them," Mr Foon said.

He said the council was gathering information from WINZ, IRD and social services and putting it on the council's website to make it easier for those needing help.

The move at Richardsons was to consolidate the business and keep it viable, said company spokeswoman Marice Richardson .

Seven full-time staff were given a month's notice earlier this week, after management decided to close the sawmill side of the business.

Three staff were laid off several months ago as the mill struggled with rising costs and compliance.

Now just six staff remain at the mill. It was employing 17 full-time staff.

Ms Richardson said it was a major decision for the company, particularly since they had such a "wonderful, stable workforce" who had been with them for many years.

"Two of the guys we've had to put off have been here for 25-plus years, but with the way we have restructured they just don't fit into the equation.

"But it's either that or keep trading with losses and you just can't do that," she said.

"Costs are rising all the time and we're not getting an economic return for our product."

The company was hoping to help the laid-off staff to find employment with other industry contacts.

The major setback behind the move to restructure was losing a main wholesale customer that accounted for one half of the mill's operation.

Ms Richardson said since deciding to close the sawmill, the company had negotiated to buy in timber to continue producing bins and other products to service the horticulture sector.

The move to cut back would have flow-on effects for other industries, she said.

"Even though we're probably a small customer for them, we won't be buying logs from our supplier any more.

"It will affect logging truck drivers, suppliers and maintenance people unfortunately."

Many years ago the mill had been in a similar situation and had to reduce staff but it was "nothing as bad as this", Ms Richardson said.

Richardsons Sawmill is the third milling business started by Nolan Richardson, who built at sites at Whatatutu and another at Motu, which was devastated by fire in 1956.

Mr Richardson built the existing Richardsons Sawmill in Nelson Road, where it has operated since 1957.

The business was passed on to his four children Vance, Marice, Stewart and Rachel in 1988. It has remained very much a family operation ever since.

- NZPA and NZHERALD STAFF