The closure of Carter Holt Harvey's plywood manufacturing plant in Tokoroa would result in the loss of more than 100 jobs. Photo / NZ Herald
Unions are calling on the Government to help the Tokoroa community after workers were told of the likely closure of the plywood plant in the town.
Carter Holt Harvey is looking at closing its plywood manufacturing plant, the company has told staff.
The factory is due to close as the company is looking to source its supply from Australia, as it was cheaper to import, E tu union leader Red Middlemiss said.
“It’s got nothing to do with labour costs.”
The closure would result in the loss of more than 100 jobs, adding to 70 people made redundant at Christmas last year, he said.
“It really sucks.”
Middlemiss has been the organiser for the paper and timber union in Tokoroa since 1984 and was present at the opening of the Kinleith site.
“I am from Mangakino and I know every one of [the workers].
“It is extremely sad.”
Carter Holt Harvey has been approached for comment.
Middlemiss said the union would now go through the process of advocating for the workers, but said it was important for local and central government to help create jobs in the district.
NZCTU Te Kauae Kaimahi president Richard Wagstaff said the closure was “another body blow to a community already reeling from the loss of jobs at the Oji Fibre plant”.
“One-hundred secure, well-paid jobs are being lost. The Government must act now to help.”
“It’s not just the workers directly impacted by this change who will feel its effect. Their families, communities, and the local economy have already suffered due to job losses.
“These workers could face a brighter future if the Government were to genuinely commit to delivering a just transition for Tokoroa. The skills and talents of workers don’t need to be lost if we could build sustainable industries that provide well-paid jobs.
“With a different approach, different outcomes are possible. It’s time to change tack, and invest in communities like Tokoroa, and not let them fall further behind,” Wagstaff said.
Oji Fibre Solutions closed Kinleith Mill’s paper production in July, saying it was no longer feasible and they would focus on pulp production instead, resulting in the loss of 130 jobs.
South Waikato Mayor Gary Petley said it had been a tough year for the district.
“One has to ask when it will end”, Petley said.
“First, it was the Oji paper mill closing, and Toi Ohomai not delivering services. It does not make for pleasant reading.”
Toi Ohomai recently looked at closing several campuses, including the one in Tokoroa, citing low student numbers and increased costs; however, the tertiary education provider last week announced the campus could be saved from closure.
Petley said the timber industry might not be able to support the region in the future, and alternatives needed to be looked at.
However, he said Tokoroa was a resilient community and despite the recent “setbacks” it was not all “doom and gloom”.
“All is not lost,” Petley said.
Efforts were under way to attract more businesses to Maraetai Road Intermodal Business Park, and Better Eggs expanded its egg production to the town.
Petley told RNZ he believed staff were notified yesterday and were given time to go home and go over the issues with their families.
It sounded like it was a done deal, he said.
Social Development Minister Louise Upston said her team would reach out to the union, while the local Ministry of Social Development office was preparing support for staff who need it.
Upston said the Government would also work with South Waikato District Council on Project Phoenix to help affected employees and the wider community.
“Businesses have been struggling with years of high inflation and low growth, coupled with changing demand,” Upston said.
“Privately owned companies like Carter Holt Harvey are facing difficult decisions to manage high costs.”
She said the Government was focused on creating the conditions for businesses to grow and on supporting Tokoroa through the closure.
Middlemiss said workers affected by the potential closure who wanted to talk, were welcome to see him at Ronnie’s Café on Leith Pl, Tokoroa. He is usually there between 9am and 10am.
Tom Eley is a multimedia journalist at the Waikato Herald. He previously worked for the Weekend Sun and Sunlive.