Job loses at mill ‘based on solid financial information’ says MP

Saturday, 30 November 2024

Taupō MP Louise Upston says Oji Fibre Solutions were facing ‘challenging economic times’ and its proposal to cut 230 jobs at Kinleith Mill was a tough business decision.

Taupō MP Louise Upston says possible job losses at Kinleith Mill are a sign of the economic times, and while stressful for locals, would have been carefully considered by the mill’s overseas owners.

Last week, the Waikato Times reported that up to 230 jobs were likely to be cut at the Tokoroa-based mill as its Japanese parent company Oji Fibre Solutions faces “extreme financial headwinds”.

Upston, whose electorate includes Tokoroa, Tīrau, Putāruru and much of the South Waikato, said while it was an “obviously stressful time” Oji’s decision to put 230 staff on notice would have been based on “solid financial information” and any jobs losses were not yet a done deal.

“They (Oji) have clearly analysed their options, and inflation and rising costs puts pressure on businesses to operate the same way they have been.

“When you have challenging economic times, inflation has had a big impact on businesses … and they have to make tough decisions, or look at other options like they are doing now.

“At this stage it is still a proposal - but uncertainly, especially around Christmas, is incredibly stressful … but not just for those who live in the area around Kinleith, the level of concern is spreading throughout the district due to the possible flow on effects.

“Times are changing so demand for some products changes over time as well … businesses must take those changes into account too.”

South Waikato mayor Gary Petley said he’d written to Government ministers about deprivation in the district before possible job losses were announced.

She said redeployment, retraining or relocation for individuals or families who may lose their jobs could be options for workers, but would not work for everyone.

“We have to focus on rebuilding the economy so we don’t lose precious Kiwi workers off shore.

“But that is cold comfort to the families affected by the proposal.”

South Waikato mayor Gary Petley, a former Kinleith Mill worker, said uncertainty was a major problem and many workers could be ratepayers in the district.

“Depending on what employment and support options are available, this could have variable consequences for individuals depending at what stage of life they are at.

“Some may retire. Some may leave the district for other employment, and some will need support to stay.”

He said it was too early to assess any impact the proposed job losses would have on the council’s rates income.

“Our immediate concern remains encouraging government agencies to provide the appropriate support to impacted workers and their families during this time.

“There is always a wider impact down the line for service businesses, and often forgotten at these times is the future loss in contributions to sporting and cultural groups when peoples’ circumstances change.

“Recently, I have written to and talked to Government representatives about the probable impacts of job losses in our district, where we already sit among some of the most deprived in New Zealand.”