100 jobs on the line in Gisborne

JNL

UP TO 100 jobs in Gisborne could go as the wood processing company JNL begins consulting on a proposal to nearly halve its workforce at its mill here.

“Although this is a proposal for consultation at this stage we all know that companies don’t make such proposals unless they’re serious about them,” said FIRST Union president Robert Reid, whose union represents many of the affected workers.

In a meeting this afternoon JNL proposed mothballing its LVL (plywood) production in Gisborne with a loss of 97 jobs from its 205-strong workforce.

“If implemented this is going to be devastating for the affected workers and the community," Mr Reid said.

“Lots of families have multiple members who work at the mill. For others, although wages aren’t great, it’s the difference between being in poverty or not."

The announcement was a blow to the newly-elected Government’s forestry, regional development and employment strategy.

“JNL is the only significant wood processor left in Gisborne and its downsizing is a market failure,” Reid said.

“The Government needs to intervene to address the market failure and promote a sustainable social and economic plan for the region’s forestry industry.

“Before the election Labour promised to create more jobs in the region’s wood sector, announcing a $20 million proposal to establish a prefab mill in Gisborne. Fast tracking this and other job creation proposals must be a priority,” Reid said.

Unions to meet with membersThe two unions involved, FIRST Union and E tuu are meeting with their members today to begin responding to the proposal.

Feedback on the consultation will close on February 7 with a final decision announced to staff on Monday, February 12.

“The unions are calling on Government to immediately establish a task force of its agencies with the industry, community and union leaders to implement a wood plan for Gisborne,” Mr Reid said.

The Juken mill at Matawhero opened in 1994 and employs around 200 full time employees. The mill processes Radiata Pine from the company’s East Coast forests to produce a range of solid wood and engineered wood products like Plywood, LVL (Laminated Veneer Lumber) and SLVL (veneer), mainly for the Japanese housing market.

General Manager of Juken, Dave Hilliard and other senior staff have been meeting local workers this afternoon to discuss the proposed changes and the reasons for them.

He said there’s been a significant drop in demand from Juken’s main export market in Japan for Plywood and structural LVL building products in the past few years, which has seen these parts of Juken’s New Zealand processing business operating at a loss.

“The Japanese housing market has been in decline and future demand for these products is not expected to improve because of the ageing population in Japan.”

Mr Hilliard said the company’s plywood is also increasingly unable to compete in the domestic and international markets against product out of large-scale wood processing plants from the likes of China and South America.

In Gisborne, we’ve invested to move from unpruned logs suited to plywood and SLVL (veneer) products to a greater proportion of pruned logs suited to higher value clearwood products used for high-end residential and commercial interior cabinetry, furniture, solid doors and feature walls.

“We’re refocusing on producing high-quality solid wood products.”

He said if the decision is made to go ahead with the changes in Gisborne the mill would stop producing plywood and LVL products and reduce the manufacture of SLVL (veneer). Around 100 full time positions would remain at the Mill.

Mr Hilliard said the proposed changes would have no impact on Juken’s forestry operations.