Solid Energy did all it could to avoid job cuts: English

NZME.

7 May, 2015 11:44 PM2 mins to read

The mood was grim as Solid Energy employees filed out of the NBS Theatre in Westport today, just minutes after finding out the company was cutting 151 jobs, plus up to 15 contracting jobs - from its Stockton mine. The company is cutting 151 jobs, but some of the losses will be made up of unfilled vacancies, meaning 113 current staff will lose their jobs. This cuts the number of staff at the mine from 397 to 246. It follows Solid's decision to cut 185 jobs a year ago.

Solid Energy did all it could to avoid the latest round of job cuts on the West Coast, the Finance Minister says, but the coal market has made it too difficult.

Staff in Westport found out yesterday that 113 current staff would lose their jobs at the mine.

Solid Energy cut 151 jobs, but some of the losses would be made up of unfilled vacancies.

Last year 185 jobs were cut in the region. The operation has been losing $2.1 million per month in its past financial year.

Bill English told Newstalk ZB this morning that Solid Energy and the government had done everything it could to reduce cost at its Stockton mine and be more productive.

"They've been through a series of changes at Stockton and the coal price just keeps falling away," he said.

"We've been trying to do everything we can to secure the viability of the company and I'll have to say as time has gone on that's become more and more challenging because the coal price has kept dropping.

"The coal market has been struggling globally and Solid Energy was undergoing negotiations to try to assure the company's future, he said.

"In the long-run the price of coal could come back up, Mr English said, but "the swings are pretty big".