Jobs cut at two sawmills

File photo / Sarah Ivey

More than 50 sawmill workers at two North Island sawmills have been told they will lose their jobs just over a week out from Christmas.

The National Distribution Union (NDU) said 26 workers were told they would be losing their jobs at the Carter Holt Harvey Woodproducts Kawerau Sawmill yesterday.

"[The] announcement reflects what we are hearing throughout the wood processing industry, that the post-recession optimism is rapidly turning back into pessimism," NDU General Secretary Robert Reid said.

The Government needed to reconsider its monetary policy, which left a high New Zealand dollar making it hard for the industry to compete globally, Mr Reid said.

The same day Winstone Pulp International (WPI) announced the closure Prime Sawmill at Matawhero, 6km west of Gisborne leaving most of the 30 workers without a job.

The sawmill would close on Christmas Eve, WPI managing director David Anderson said.

Mr Anderson said deteriorating market conditions and the strengthening New Zealand dollar had forced the mill to mothball its operation.

"Revenue is down and prices are up. We have been hanging on since we downsized the operation last year but, despite our efforts, the strengthening New Zealand dollar has caused financial losses to increase," Mr Anderson said.

"We have to face the fact that there is no prospect of change in the current trading conditions and we simply cannot continue to lose money.

A team of four to six workers would carry out the mothballing operation, which included plant and machinery preparation and equipment stocktaking.

It would take about three months to grease the machinery and cover everything up.

Kilns manager Joe Tawhara, who has been working at the site for more than 10 years, was philosophical about the latest turn of events and said he had seen it all before.

"We are mothballing, not scrapheaping.

- NZPA