March 26, 2007
Media Release

Fonterra’s decision disloyal to local workers

Fonterra’s decision to endanger decent Kiwi jobs by shifting its coal contract to an Australian supplier shows a lack of loyalty to New Zealand and its workers says the Engineering, Printing and Manufacturing Union.

The dairy giant recently decided to shift its business from Solid Energy to the Australian-owned Eastern Corporation, leaving Solid Energy with no other choice than to scale back its Ohai operations.

EPMU National Secretary Andrew Little says that even though Eastern Corporation will also be mining in Ohai the move is likely to mean the loss of decent jobs. Profits from the mine will now go to Australia.

“The workers at Solid Energy have good wages and conditions that have come from a long-term relationship between the EPMU and the company and a strong sense of union identity within the workforce. Eastern Corporation has no such tradition in the region and may well have come in with a lower price for Fonterra off the backs of its workers.

“We’d expect better than this from Fonterra considering it’s a Kiwi-owned company that has done very well out of Southland. To now turn to an Australian company for its energy needs shows disloyalty to the region and its workforce.

The EPMU represents more than two hundred Solid Energy workers around the country.

ENDS

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