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43 cents in the $ payment to Tachikawa workers confirmed

Media release: FIRST Union

Saturday November 30 2013

43 cents in the dollar payment to Tachikawa workers confirmed

One week after being advised that any payment before Christmas was unlikely, the receivers of Tachikawa Forest Products have advised the union for former workers at the sawmill on Friday evening that a payment has now been confirmed.

On October 18 Tachikawa Forest Products was placed into receivership, affecting over 120 workers.

Late yesterday Kordamentha wrote to former Tachikawa workers advising that they would receive an initial payment of 43 cents in the dollar before Christmas, and a further as yet un-quantified amount early in the New Year.

“News of this payment will be especially appreciated by the Tachikawa workers as they come together today to attend the whanau day arranged by Apumoana Marae, local hapu and the union,” FIRST Union General Secretary Robert Reid said.

“As reported earlier this week, the receiver had written to Tachikawa workers saying their payment was being held up as a result of a claim by a forestry company.”

“Following a picket of Hancock Forest Management on Wednesday, the receivers advised that the way had been cleared for an initial payment to be made.”

In a receivership situation workers are entitled to wages, holiday pay and redundancy compensation as preferential creditors, up to the current maximum amount of $20,340 in receivership law.

For Tachikawa workers owed this maximum amount, today’s announcement means they will soon be receiving around $8,000 before tax.

The receiver agreed with a union request to pay redundancy pay first, as the receipt of redundancy pay will have no affect on any unemployment benefit from Work and Income, Robert Reid said.

Details of today’s event in Rotorua:

Tachikawa workers and their families will gather today for a Whanau Day at a local Rotorua marae. There will be presents for the kids, an all-day barbeque and bands and singers.

Where: Apumoana Marae, Tarawera Rd.

When: 10am – 3pm, Saturday 30 November.


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