Kinleith mill workers ‘angry’ as plant proposes end of paper production, 230 jobs at risk
Wednesday, 20 November 2024
The Kinleith pulp and paper plant near Tokoroa may cease to produce paper in 2025.
The proposed closure of the paper production operation by Oji Fibre Solutions was presented to staff on Wednesday morning.
The closure may affect about 230 jobs.
Workers at Tokoroa’s Kinleith pulp and paper mill are “angry” after plant owner Oji Fibre Solutions announced on Wednesday a proposal to end production in 2025.
“It’s not just the directly impacted workers who are angry,” First Union delegate Ian Farall said in a statement.
“We’re in unity here, and we know the downstream effects will harm the whole community. It’s the truck drivers, the local cafés and other businesses – many people locally rely on the mill as the heartbeat of south Waikato.”
Workers had been called to a meeting in the plant canteen on Wednesday morning where they heard from chief executive Jon Ryder.
“We are consulting on a plan to permanently shut the Kinleith PM6 paper machine and move to a paper import model for our packaging operations,” Ryder said in a statement.
“Manufacturing paper has become unprofitable. Paper production at Kinleith Mill has suffered significant losses for several years and we see no prospect of the situation improving,' he said.
“Due to the complexities of operational changes required at the mill for this proposal, the exact number of potential job losses is unknown at this stage. However, we anticipate approximately 230 roles may be affected.'
Workers acknowledged the market conditions were not good for the business, but said it was “a long time in the making”, union delegate Farall said.
“We’re all very disappointed by their inability to turn it around. They can’t control what the market does, but they could have been much better prepared for this point in the cycle,” Farall said.
“There have been many problems at the mill, they have not kept up with maintenance, and they have not made the right investments to secure a future for paper production.”
In a letter on Monday, Ryder had invited staff to the meeting, advising specific production areas would be shut for the period to allow workers to attend, Waikato Times reported.
The notice had said a “change proposal for the mill” would be presented, and that Oji Fibre Solutions had faced “extreme financial headwinds” with the plant.
People living in the area told Stuff the proposed closure will have a large impact on the community.
“We all know someone who works out there. If that’s what’s happening then it is very sad,” a resident said.
Many locals were shocked by the news.
“We’ve heard talk through the grapevine but hearing it on the news was a shock. It’s devastating,” one woman said.
“I have family who work there, so it’s quite emotional,” another said.
A worker at a local superette said it should be up to the employer to ensure other jobs will be provided to those potentially affected.
South Waikato District Mayor, Hamish Daine said he’s aware of the effect this would have on the community.
“You know we look around the country where other mills have fully or partially closed and they’re having huge impacts,” he said.
E tū negotiation specialist Joe Gallagher called on the company to do better by their workers.
“OJI have got themselves into this situation, and they can’t just hang the workers out to dry,” Gallagher said in a statement.
“We don’t believe the company has done everything they can to avoid this outcome. It’s a hell of a thing to tell people with Christmas just around the corner, and we need a longer period of consultation to really understand the potential alternatives to stopping paper production completely.”
At its peak during the 1980s, under NZ Forest Products management, the mill employed thousands of workers in well paid jobs and pushed the population of Tokoroa to 18,000 inhabitants.
After other changes of ownership, the mill was bought by the current owners, one of the world’s largest paper manufacturers, in 2014.
Over several decades, the workforce has steadily declined through a series of restructures and the contracting of out of maintenance functions to leave roughly 400 workers.
In September, Oji Fibre Solutions announced the closure of its recycling mill in Penrose, Auckland with the loss of 75 jobs after running at a loss for the past three years.