PHOTO: RAWPIXEL
Hundreds of jobs are set to be lost as one of the central North Island’s largest employers, Winstone Pulp International, announces the closure of its two mills due to rising energy costs. Ruapehu District Mayor Weston Kirton confirmed the company’s decision to shut down its Karioi and Tangiwai mills after unsuccessful talks with energy provider Mercury and government officials to keep the operations viable.
The closures will affect around 230 workers. Although staff had submitted 189 proposals aimed at improving the mills and cutting costs, and a petition was launched to prevent the closure, efforts were not enough to reverse the decision. The community fears the loss of these jobs could devastate the local economy, where Winstone is a key employer.
Workers heading into the Winstone Pulp International meeting after the closure of two of its mills. Photo: RNZ / Alexa Cook
Daniel Abernathy, an electrician and union delegate at Winstone, shared that there had been some optimism for a government deal to save the mills. Despite the company’s positive reception to the staff submissions, the mills will close, leaving workers to prepare for the impact.
Energy Minister Simeon Brown acknowledged the tough situation for the Ruapehu District but emphasized that the government would not intervene, calling the closure a commercial decision. Brown highlighted efforts to ensure competitive energy prices, including lifting bans on offshore oil and gas exploration and fast-tracking energy projects.
Staff made 189 submissions to improve the mill and cut down on costs. Photo: RNZ / Alexa Cook
Labour MP Helen White expressed concern over the government’s decision not to act, stressing that the loss of these jobs would affect the entire community, with little other employment available in the area.
Union leaders from FIRST Union and E tū described the outcome as “devastating.” FIRST Union general secretary Dennis Maga criticized the government for failing to prevent the closure and called for stronger support from government agencies to assist affected workers and their families.
SOURCE: RNZ