Tangiwai staff laid off

Ruapehu Bulletin, Volume 14, Issue 663, 19 November 1996, Page 1

Tangiwai staff laid off

Fourteen staff have been laid off at the Tangiwai Sawmill, thanks in part to the high New Zealand dollar value and the saturated domestic timber market. Mill manager Terry James told the Bulletin last week that the mill had closed its small log line which provides timber for the domestic market and was concentrating on the export market, with less processing work required. Nine of the 14 staff volunteered to go and five were compulsory redundancies. The cuts bring the total staff down to about 90 people. Mr James said there was an over-supply of timber for the domestic market because there were limited opportunities

in the export market thanks to the high dollar. "A lot of the timber that could be exported is being put onto the domestic market," he said. He said a drop in the value of the dollar would not have the same short-term benefits as for pulp, as the sawmill could not gear up "overnight", but would improve the situation in the long term. The sawmill had been gradually building up in capacity, taking on staff, over the past 18 months. Mr James said while it was very unfortunate to have to go through the redundancies process, it had gone reasonably well and it would lead to security of employment for the remaining work force.