Source: Workers First Union
There has been disappointment and shock from Workers First Union members in Northland this morning following the announcement that one of two of Northland’s Juken New Zealand mills has failed to find a buyer and is proposed for closure.
Marcus Coverdale, Workers First Organiser, said staff from the JNL-owned Northland Mill were called to a 6:30 AM meeting this morning and told that no buyer had been found during the sale window, and a proposal to close would open for consultation from 8 July.
“We’re disappointed that no buyer has been found for Northland Mill but there is still a window for central Government to step up and push for a solution,” said Mr Coverdale.
“Now is the time for a localised solution to save our manufacturing industry and our skilled woodworkers.”
Meanwhile, JNL’s second mill – the Triboard Mill – appears to have found a buyer, or at least, was not proposed for closure following this morning’s meeting, Mr Coverdale said.
“In terms of sustainability, between the two mills, the full log is used,” said Mr Coverdale. “The top of a log is refined for the tri-board product, and the middle for veneers and mulch.”
“Without a buyer found for the Northland Mill, we’ll be taking the top of the log for tri-board and sending the other raw two-thirds overseas without any value added.”
The Northland Mill employs around 60 people, with 40 Workers First members who have redundancy provisions and may be able to access redeployment or other options, Mr Coverdale said.
The proposal window and consultation would begin on 8 July and a final decision is expected by 16 July. In the meantime, the mill’s Collective Agreement has expired, and it was unlikely that bargaining for a new one-month term prior to a closure would commence.
“I think union members have been frustrated as the company continues to talk about ‘good faith’ without guaranteeing their future or making any gesture of that nature,” said Mr Coverdale.
“But not all hope is lost, and it’s now time to wait to see if this Government will offer the mill workers a lifeline or if we’re set to lose yet another important wood manufacturing facility.”
The potential closure of Northland Mill would be the seventh major wood processing site lost under the current National-NZ First-ACT Government.