The future looks bleak for 16 staff at a Rotorua sawmill.
Tachikawa Forest Products on Vaughan Rd is considering contracting out its sawdoctoring work, a move that would affect 16 of its employees. The workers sharpen saws and equipment used to cut timber at the site.
Theproposal was tabled to staff and the National Distribution Union about two months ago. Company management are discussing the issue with union representatives. A decision on their fate is expected late next week.
Site manager Russell Black and union spokesman Ra Daniels declined to comment about the proposal during the consultation period. However, it's understood the proposal has partly been driven by the high New Zealand dollar, which has hurt many Central North Island exporters.
The Kiwi dollar peaked at 81.08 US cents near the end of last month but has since slipped to under 75 US cents.
Twenty jobs were axed from Kawerau's Remanufacturing Plant at the end of June.
%Thirty staff and 50 contractors were told their jobs were on the line as owners Carter Holt Harvey considered closing the plant earlier this year. However, negotiations between the company and Engineering, Printing and Manufacturing Union led to 10 jobs being saved.
The staff will continue to make finger-jointed and laminated lumber for Australasian housing markets, as well as solid and finger-jointed kiln-dried studs and components.
The company isn't talking about the layoffs.
However, the Daily Post understands the 50 contractors, who were not covered by the union, also lost their jobs.
The union's national industry organiser for timber and forestry, Alan Clarence, said Carter Holt Harvey was supportive during the consultation period.
Other Kawerau companies recruiting staff were allowed on site to give presentations to the workers made redundant.
It was unclear whether those workers were re-employed elsewhere in the town, he said.
