Past overcutting forces forestry layoffs

By PAM GRAHAM

A shortage of workers is a problem for a booming building sector but in the forests that supply the industry, hundreds of workers are out of work.

Forest Industry Contractors Association chief executive John Stulen estimates about 45 crews, employing 450 people, have gone from the industry this year.

Most recently, a harvest tender round at Kaingaroa Timberland has caused 70 job losses.

Kaingaroa, which is owned by Harvard University's endowment fund, is cutting its harvest to rebuild the age profile of its central North Island forests.

This week, 11 harvest packages were decided and seven contractors employing 86 people who had worked for Kaingaroa missed out. As many as 20 people will pick up temporary work being offered but the rest will not.

Stulen said the Kaingaroa management was dealing with the legacy of past owners who had overcut forests.

"They are trying to make the best of a decimated forest they purchased," he said.

"The sooner we can put this sorry chapter of corporate stewardship behind us and move to a sustainable industry focused on long-term value, the better."

The association has been critical of the boom-bust mentality in the industry and the impact it has on the workforce.

Companies overcut forests when prices fell to maintain profits and now they are cutting back to rebuild age profiles. Also, there has been a change in strategy toward sending a signal to markets that supply will dry up if prices fall.

In boom times, contractors struggle to train workers.

The present cuts to the workforce are particularly frustrating because contractors know the national harvest is projected to double in the next 20 years.

The industry has been hit by low log prices in Korea and big increases in shipping costs.