One week after being advised that any payment before Christmas was unlikely, the receivers of Tachikawa Forest Products have advised the union for former workers at the sawmill last night that a payment has now been confirmed.
On October 18, Tachikawa Forest Products was placed into receivership, affecting about 130workers.
Late yesterday afternoon, Kordamentha wrote to former Tachikawa workers advising that they would receive an initial payment of 43 cents in the dollar before Christmas, and a further as yet unquantified amount early in the New Year.
"News of this payment will be especially appreciated by the Tachikawa workers as they come together today to attend the whanau day arranged by Apumoana Marae, local hapu and the union," FIRST Union General Secretary Robert Reid said.
"As reported earlier this week, the receiver had written to Tachikawa workers saying their payment was being held up as a result of a claim by a forestry company."
"Following a picket of Hancock Forest Management on Wednesday, the receivers advised that the way had been cleared for an initial payment to be made."
In a receivership situation workers are entitled to wages, holiday pay and redundancy compensation as preferential creditors, up to the current maximum amount of $20,340 in receivership law.
For Tachikawa workers owed this maximum amount, today's announcement means they will soon be receiving around $8,000 before tax.
The receiver agreed with a union request to pay redundancy pay first, as the receipt of redundancy pay will have no affect on any unemployment benefit from Work and Income, Robert Reid said.
