Redundancy letters to 45 at Juken mill sent ‘with regret’

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Redundancy letters have been given to more than half of the 80 employees at the Juken mill at Matawhero.

In a statement late yesterday afternoon, Juken NZ managing director Hiroyuki Kawado said, it was with regret that the redundancy letters had been given out, further to the company’s decision to close the mill in March due to its ongoing losses.

“I want to thank our Gisborne employees for their loyalty and understanding. They are a hard-working and dedicated team and I am saddened that most will soon no longer be part of Juken.

“I respect the decision of those who have requested redundancy in December, allowing colleagues to stay on in the transition crew until March. I wish those heading into retirement well. We have a substantial redundancy clause in our employment agreements that will support permanent employees to transition into new jobs or other opportunities.

“I also want to recognise the support provided by members of our executive and HR teams to our Gisborne employees. In the past week, they have met separately with each employee to understand his or her preferences, and any specific needs for assistance.

“Over the coming weeks, we will continue to offer a comprehensive support programme, including job-searching workshops, free and confidential counselling, tax advice, and on-site visits by at least 10 other employers and Ministry of Social Development (MSD) work-brokers with multiple, relevant vacancies.

“Lastly, I would like to acknowledge local leaders, unions and organisations for their support, including Trust Tairāwhiti, Gisborne District Council, mana whenua, MSD, Careers NZ and Eastland Careers.

“We remain open to having conversations with interested and suitable parties about selling all or part of the Gisborne Mill business.”

■  Forty-five of the Gisborne Mill’s 80 employees have been given redundancy letters; 32 requested redundancy, nine of whom are retiring as aged 65-plus; 13 were not selected to be in the transition crew.

■ Of the 35 employees not given redundancy letters, 25 have been appointed to the transition crew, with one confirmed redeployment after; nine resigned and have been supported to transition to new jobs; one has accepted a new role at Juken head office in Gisborne.