CHH Profit Means No Case For Job Cuts

July 17, 2002

CHH Profit Means No Case For Job Cuts

Carter Holt Harvey’s announcement of a $73 million profit further undermines its case for sacking half the workforce at the Kinleith pulp and paper mill, their union says.

EPMU national secretary Andrew Little said that the half-year result, announced today, was good news for the company that recorded a $15 million loss for the same period last year.

“Pulp prices are getting better, and this undermines any justification for the radical changes being proposed at Kinleith,” he said.

Mr Little said that the proposed changes, in which nearly 400 workers would lose their jobs and maintenance would be contracted to an outside company, would not make the mill any more competitive or sustainable.

“The company announced its plans at a time when pulp prices were low and its claims could look justifiable on paper,” he said.

“But the nature of the market they are in is cyclical and they are now on the upward swing of the cycle.

“The real challenge for the company is to work with the existing workforce to improve the mill’s productivity. This is achievable and we remain keen to co-operate with the company to do this,” Mr Little said.

Meanwhile, the Employment Court will on Monday begin hearing an appeal by the union against an Employment Tribunal ruling over the proposed Kinleith job losses. The union wants the company to be ordered to properly consult the workforce over its intentions.

Ends

Note: The Employment Court hearing will be held in Auckland at the Countrywide Building in Queen St. It begins at 9.30am on Monday and is scheduled to go for at least four days.

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