More severance pay on way for Tachikawa workers

Staff made redundant from Tachikawa Forest Products last year have been told they will get more redundancy payouts.

Former Tachikawa Forest Products staff made redundant last year have received confirmation they will get more redundancy payments.

About 130 staff lost their jobs at the mill on October 24 after its Japanese owner announced he could not afford to continue operating.

Receivers KordaMentha were called in to liquidate the business, or find a buyer to take it over.

First Union general secretary Robert Reid said he received confirmation on Tuesday last week that receivers would be able to pay workers a further 30c in the dollar, after they were paid 43c in the dollar before Christmas.

In a receivership situation workers were entitled to wages, holiday pay and redundancy compensation as preferential creditors, up to the maximum amount of $20,340 under receivership law.

Mr Reid said former mill workers would be receiving letters from the receivers this week confirming the payment.

"They also confirmed a further payment of about another 7c in the dollar will be paid out later on giving them an overall total of 80c in the dollar.

"For me this is better than expected, but for the workers there will always be disappointment.

"They still feel robbed by not getting the full 100 per cent, which is completely understandable."

But, Mr Reid said it would be one of the highest redundancy payouts he had been involved with in a receivership situation.

Former Tachikawa employee Turei Heurea said while he was pleased he'd be getting another payment for his years of work at the mill, many former staff were tired of the process and wanted to move on.

"Whatever we get out of them now is a bonus, we'll take it.

"Many just want to cut their ties with that place now but are grateful for what's coming our way," he said.

"You can't sit around crossing your fingers waiting for that place to do right by us and we are not holding our breath waiting for more money."