Eighty-six forestry workers have lost their jobs after Kaingaroa Timberlands reduced its harvest.
The reduction, from 2.4 million to 2 million cu m a year, was announced by the forestry management company in March.
Now the axe has fallen on seven contractors who employed 86 people in the company's forests.
Jacob Te Kurapa,
a Galatea-Murupara ward representative on the Whakatane District Council, said the job losses would be devastating for communities such as Murupara where the workers lived.
The community of just under 2000 was rocked last year by the closure of a major employer, the KFL timber processing plant, with the loss of 57 jobs.
"We just don't need this at this time ... the communities of Murupara, Te Whaiti and Minginui are already stuck in the grip of a downturn and this is the worst thing that could have happened."
This week the contractors who tendered for 11 harvest "packages" were notified of the outcome of the process and its consequences, said Kaingaroa Timberlands general manager Russell Dale.
The company said it would offer alternative harvesting work, which could provide jobs for up to 20 people.
"All successful contractors are from the local contractor community, even though Kaingaroa Timberlands did invite proposals more widely," Mr Dale said.
"We are pleased with the quality of contractors who tendered, and this reflects well on contractors in the central North Island."
The new contracts would give "greater certainty" to contractors and their employees than they had had for some time.
"We are very aware of the impact of the decision to reduce harvest levels on local communities in the region, but high levels of harvest by previous owners has reduced clear-fell age to a point where changes were necessary."
- NZPA
