Mill strike at record 81st day

By MATHEW DEARNALEY

Negotiations have failed to stop the Kinleith pulp-and-paper strike from achieving a dubious record by having dragged on longer than previous walkouts at the mill.

The strike by about 270 workers enters its 81st day this afternoon, making it longer than an 80-day stoppage in 1980 and a 79-day stoush in 1992, which is still remembered for sucking millions of dollars out of the Tokoroa economy.

Those on strike are already estimated to have lost more than $4 million in wages, and the stoppage has cost mill owner Carter Holt Harvey anything from $14 million to $40 million, depending on varying daily estimates by the company.

"It depends whether they are suing us in court or reporting to shareholders," said one striking worker yesterday.

Thousands of people are affected by the strike, from logging contractors and transport operators to engineering firms and retailers, with corporates such as Tranz Rail blaming it for reduced profits.

South Waikato Mayor Gordon Blake was told by Tokoroa retailers at a meeting with affected groups on Friday that shop takings were down 25 to 30 per cent in the town of 13,000 people.

Mr Blake said considerable concern was also expressed about the impact of the high dollar on exports generally, particularly on the dairying industry, which is the district's other major earner besides forest products.

He said the fact that negotiations were continuing today after 10 days of solid talks in the past fortnight lent an "air of optimism and hope" to the district that the dispute would be over soon.

"But everybody is being very careful they don't unwittingly do anything that may in any way jeopardise a settlement."

Although more than 100 administration and managerial staff were told to take holidays after their work dried up, Mr Blake understood maintenance contractor ABB was doing what it could to avoid suspending about 170 workers.

ABB executives have been unavailable for comment, but one industry source said it would be dangerous standing down skilled workers who had only recently transferred from Carter Holt Harvey with hefty severance payouts and who may disappear from the district.

Mr Blake feared it would be months before logging contractors and harvesting crews, who are on shortened working weeks because of a huge backlog of unprocessed timber, could return to normal levels of activity.

Union and company representatives are saying nothing about the negotiations, which are being held in Taupo, and why a settlement was not reached last week.