Kinleith mill workers to receive redundancy notices

By PAM GRAHAM

Carter Holt Harvey will issue redundancy notices to 266 maintenance workers at Tokoroa's Kinleith pulp and paper mill after signing a contract with ABB Maintenance Services.

Carter Holt said yesterday that the contract would save $100 million over five years at a mill that was losing money.

"The redundancies are disappointing," said new chief executive Peter Springford. "However, a large number of these workers may be employed by ABB."

The move has been opposed by the Engineering, Printing and Manufacturing Union and delayed by an Employment Court ruling requiring the company to consult more.

A letter of intent was signed in May.

Springford said the timing of the redundancies was regrettable but "delays, stopwork meetings and extensive consultation under the Employment Relations Act have slowed down the changes necessary at Kinleith.

"In the meantime, Kinleith continues to lose money and the global pulp market gets tougher."

Union spokesman Mike Sweeney said about half the workers would probably get jobs with ABB, but the outsourcing would affect the working relationship between maintenance and production workers.