Kinleith Mill job cuts decision looms for 230 workers

View of Kinleith Mill from Tokoroa. Photo / Maryana Garcia

Libby Kirkby-McLeod at RNZ

A final decision is expected this morning on whether 230 workers will lose their jobs at Kinleith Mill.

An E tū union delegate told RNZ that staff had been called to an open-air meeting at 8.30am on the Tokoroa mill’s grounds.

In November, Oji Fibre Solutions (OFS) chief executive Jon Ryder said the company was proposing to simplify Kinleith Mill’s operations by focusing on pulp and discontinuing paper production, which he said ran at a loss.

That would mean permanently shutting down the last paper machine, moving to a paper import model for packaging operations, and up to 230 jobs going at the end of June.

Ryder said in a statement to RNZ this week that since November the company had been in consultation with staff and their union representatives.

Kinleith Mill, near Tokoroa. Photo / Greg Bowker

“We have taken the time to carefully consider all feedback received and expect to announce a decision on or around Friday 14 February.

“Our priority is to speak to our people first regarding any proposal decision,” Ryder said.

The proposed closure came after a year of bad news for New Zealand manufacturing, including another OFS mill closure in Penrose, and the closure of Winstone Pulp International’s Tangiwai Sawmill and Karioi Pulpmill.

Several politicians, including New Zealand First leader Winston Peters, Minister for Social Development Louise Upston, and Green MP Tamatha Paul, attended a community meeting in Tokoroa in December to discuss what could be done to save Kinleith.

RNZ reached out to Regional Development Minister Shane Jones' office to see what had been achieved since then, but was told he would not comment until after today’s announcement.

Paul grew up in Tokoroa and said Jones and Peters made commitments to the community at the meeting in December and she wanted to make sure those commitments were honoured.

“If we are happy with the outcome then that’s excellent. If it’s not the outcome we wanted, then I’m going to have to apply more pressure within Parliament,” Paul said.

Despite this warning, she was holding out hope for a good announcement.

“I would much rather that there was an outcome that we all really desperately need, more than political point-scoring, so I’m hoping it will be a good announcement.”

E tū union negotiator Joe Gallagher said he was also trying to stay optimistic.

Deputy Prime Minister Winston Peters in Tokoroa to speak about the plight of Kinleith Mill workers. Photo / Maryana Garcia

“It’s going to be either good news or bad news, but I would like to be positive - go there with a positive mindset - that there is a willingness of all parties to extend this process out and look at the best options for the site, for the workforce, and for the community.”

He said the union has had good engagement with the owners since the proposal was announced, but that workers were quite nervous as they awaited the final decision.

“We’ve got younger members... people want certainty about their futures. Some people have 20-25 years left to work,” he said.

Gallagher thought Jones and Peters understood the issues involved with closing the paper operations of the mill.

“What we need to see is the whole government falling in behind and looking to see how they can support Shane, New Zealand First, and the workforce, to really open up a pathway for the workforce and community.”