Coronavirus, Carter Holt Harvey Whangārei mill closure 'couldn't be worse' for industry

Monday, 10 February 2020

Workers at Carter Holt Harvey's Whangārei mill are 'disappointed' with the company's announcement confirming the mill's closure, union representatives say.

On Monday, CHH Timber chief executive Clayton Harris confirmed a final decision had been made to close the mill, with the loss of 111 jobs, after consultation started in January.

The closure was disappointing and a 'double-whammy' for the industry which is already under stress from coronavirus, said Northern Amalgamated Workers Union secretary Maurice Davis.

Timber is piling up at Gisborne Port, after exports to China stopped due to the coronavirus outbreak.

Log exports to China have slowed and forestry workers around the country have downed tools, due to fears of coronavirus spreading.

* Carter Harvey Holt Whangarei workers 'shocked' over potential closure

Carter Holt Harvey's Whangārei mill closure will mean the loss of 111 jobs, plus contracting work (file photo).

* Coronavirus sees logging crews across New Zealand down tools

* Log exporter advocates 'patient approach' to China market**

Whangārei mayor Sheryl Mai said the mill closure would have far-reaching consequences, due to the city's interconnection.

'It couldn't be worse: a potential pandemic while people are losing their jobs.'

The mill's closure would impact 111 jobs, plus up to 40 sub-contractors, Davis said.

But he had faith the workers, who had much-needed skills, would be able to find new jobs.

'There's highly skilled people that drive some big machinery around plants, so they're capable - that saves companies having to go off-shore to look for labour,' Davis said.

'The plant operators have licences to operate heavy machinery - at the moment you can't get them for love nor money.'

Opportunities in Northland included road maintenance, construction and other manufacturing, he said.

The KiwiRail upgrade of the Northland rail line, providing 200 extra jobs, could also provide work.

Davis said the union was working hard to find work opportunities for all the employees, which may mean having to travel to north Auckland.

Carter Holt Harvey would also pay workers a 'reasonable' redundancy, as per their collective agreement, he said.

Whangārei mayor Sheryl Mai offered her sympathies to those involved but said it was unlikely to impact the city's unemployment rate.

'While this decision might not have great impacts on our total employment, for the individuals and their families it may cause significant hardship,' she said.

The Northland Chamber of Commerce's pop-up employment expo Job Lab was working to connect employers with workers, while NorthTec was looking at training needs in Provincial Growth Fund projects, Mai said.

The One Billion Trees project could also present employment opportunities, she said.

Harris said the mill would continue to operate until early April, with staff finishing progressively over several weeks.

'The decision has been made reluctantly and we know this will be a stressful and difficult time for everyone involved with the mill.'

Staff would be given the support they need, with the company working closely with the union and staff, he said.