Sixty job losses on cards with proposal to close operations at Glenbrook steel plant
Friday, 1 May 2020
About 60 steel plant workers could be facing an unknown future as a steel plant restructures their Waiuku business.
NZ Steel's Pipe and Hollows Plant has told workers that they are undertaking a restructure which could see the end of their jobs at the plant for most workers.
The employees may be redeployed elsewhere or possibly have no job at all.
The plant restarted work on Tuesday under alert level three restrictions.
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'We're a team of 60 with people from five months to 45 years of experience at the plant. We were glad to be back this week, doing work we're proud of, with assurance from management to push forward.
'By Thursday afternoon, we were confronted with a proposal that shook all of that completely,' union delegate Lance Gush said.
Gush, a steel worker for 14 years, is concerned about the impact the restructure will have on a community already bearing the brunt of the Covid-19 crisis.
'I have workmates with young families, who have already experienced the job loss of one parent. Now with this announcement, they've found both Mum and Dad's employment balancing on a knife edge.'
Gush said that retaining their jobs isn't just about the workers and their families but also the future of the New Zealand economy.
'There is an opportunity for the Government to invest in the future of our country and stimulate our economy by supporting and utilising our domestic products, resources and workforce.'
A New Zealand Steel spokesperson said in an email, New Zealand Steel had started consultation on a proposal to close its steel pipe and hollows making operations at Glenbrook.
The company produces around 600,000 tonnes of steel annually of which 20,000 tonnes is pipe & hollow sections.
'Pipe sales have been returning a negative margin for at least 5 years under considerable pressure from imports.
'The review is being conducted in consultation with employees directly and their union representatives to understand the closure options or pathways to return this manufacturing unit to profitability.'
They said the review had just begun so no decisions had been made but the review was likely to take five weeks.
E tū union's Joe Gallagher said there needs to be a level playing field so that New Zealand isn't constantly being undercut by cheap steel imports.
'There's much more that we should be doing to support NZ steel and the wider manufacturing industry.
'We know the long and often distressing history of manufacturing here. Let's begin turning it all around.'
He wants the Government to take this opportunity to fix the problems in manufacturing, as part of rebuilding better after Covid-19.