A Rotorua company which has taken over management of New Zealand's largest forest has warned it could reduce its contractor numbers as a downturn in the log export market continues.
The downturn and the appointment of a new manager for the Central North Island Forest Partnership have already been blamed for the loss of about 200 jobs in the central North Island and the East Coast recently.
Several contractors in the region face financial ruin.
Both Fletcher Challenge Forests, which used to manage the partnership's assets, and the new manager, Timber Management Company, have denied responsibility for the lay-offs.
Taupo contractor Barry Clunie says he has scoured the country for work for himself and his employees since he lost his subcontract to Fletchers.
He has no employment prospects beyond the next five weeks but has to muster tens of thousands of dollars every month to pay for machinery. His company, Phoenix Logging, bought $1.8 million worth of machinery and employed 10 people.
"We were told there was plenty of work there for us and won a three-year contract and in good faith ... we bought the machinery," Mr Clunie said.
Timber Management Company chief executive Russell Dale said yesterday he sympathised with contractors and their employees but overseas demand for wood dictated the level of harvest.
His company was cutting almost the same amount of trees as Fletchers had and planned its harvests up to five years ahead.
"We are hoping to maintain our cut at the same level as last year but if market conditions get any worse there is a risk we will have to decrease our contractor numbers."
Fletcher Challenge Forests spokesman Paul Gillard said contractors would have been aware the company risked losing its contract to manage the Central North Island Forest Partnership's assets.
"The situation with (the partnership) has always been public knowledge," Mr Gillard said.
The National Distribution Union, Maori Council and forestry workers plan to lobby the Government to force big forestry companies to be more socially responsible and consider the fate of workers before making decisions to lay off workers.
Meanwhile, the latest downturn in the forestry industry has put Cox Forestry Services Ltd, and its eight crew members out of business.
Blain Cox, who owns the company has spent all his working life in forestry and now, at the age of 28, says he wants to abandon the industry. Mr Cox has been a forestry worker since he was 16.
He said he rang every forestry listing in the phone book to find work, to no avail.
Now he has had enough and said the demise of his business had served as a wake-up call to turn his back on forestry. "I've always been a positive person but I don't really see any future in forestry," he said.
- DAILY POST (ROTORUA)
Bleak future for Rotorua forestry workers
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