Karioi pulp mill workforce cut by 10 per cent

Ruapehu Bulletin, Volume 14, Issue 672, 4 February 1997, Page 1

Karioi pulp mill workforce cut by 10 per cent

Staff levels at the Karioi pulp mill are being reduced by 10 per cent in an effort to reduce operating losses. Winstone Pulp International have called for volunteers for redundancy among wage staff and negotiated redundancies for some salaried staff, said chief executive officer David Anderson last Friday. He said five positions that have become vacant over the past six months will not be refilled, and 10 people will take up the redundancy offer, making a total reduction of 1 5. He said the process had been an amicable one.

The Bulletin understands that more than enough people had opted for redundancy, and that the company would be choosing from that number. Mr Anderson said the restructuring had been forced on the company by the continuing depressed pulp market and over-valued New Zealand dollar. "While the company accepts that it is in a cyclic commodity market, the 28 per cent appreciation of the New Zealand dollar since 1993 has created an environment for exporters that could only lead to the action now being taken by WPI," said Mr

Anderson. He supports other exporters and the recent report by Goldman Sachs that said the New Zealand dollar was over-valued by 10-15 per cent. It was now obvious that the government is not going to do anything to bring down the dollar value, stated Mr Anderson. Before Christmas, management reviewed the mill' s budget and cut $2.7 million for the 1 997 year to try to reduce its losses. "But it became clear over Christmas that this wasn' t going to be enough," claimed Mr Anderson,

explaining the need for the staff reductions. The mill has been back in full production since 13 January and Mr Anderson said WPI would "continue its already successful drive to improve productivity and drive down costs". He said WPI was aware of the impact that the redundancies would have on the local community and would be working hard to find ways to assist those made redundant. The company would "go out of its way" to help them find employment elsewhere in the industry and would provide counselling.