Category: Engineering, Infrastructure, and Extractions

E tū and FIRST Union members are devastated to learn that Winstone Pulp International (WPI) has confirmed their intention to close the Karioi pulp mill and Tangiwai sawmill despite significant last-minute efforts to keep the mills open and save around 300 jobs in the community.

Jude Sinai, a FIRST Union delegate at the Karioi pulp mill, said workers were gutted, disappointed and let down by the decision to close.

“We were hoping that the Government and wood sector would find a positive outcome and look for a way forward that’s profitable,” said Mr Sinai.

“But they didn’t come to the party and couldn’t put together a long-term strategy to lock in power prices. Whatever was offered wasn’t enough.”

“It’s sad being here today and nostalgic – some of us have been here 20, 30, 40 years. We’ve spent so long at these sites, but the end was really sudden, with only 2 weeks to prepare physically, financially and emotionally for this outcome.”

“But we have a lot of aroha for our community and want to thank everyone who supported us. They’ve been staunchly behind us, and our hearts go out to you.”

“This will have a huge ripple effect across the Ruapehu district – these jobs are a financial backbone for the region.”

“We’re the coaches, we sit on the boards of trustees, we send our kids to the local schools… without the support, it will open up a huge vacuum in the community.”

“There’s disappointment we couldn’t make a go of it, and we want to thank the community for fighting and supporting us through this anxious time,” said Daniel Abernethy, E tū delegate.

“There are some of us that call these communities home, and leaving here is the last option. I never thought the plant was going to close, I considered this to be my retirement job.”

Dennis Maga, FIRST Union General Secretary, said that WPI’s decision to close is a tragedy for workers, families, community, local iwi and hapū, and other businesses in the area.

“The decision to close the doors of the two mills follows the spike in electricity prices during August that led to the company suspending production for over a month,” said Mr Maga.

“The closure shows a Government asleep at the wheel with no care for the destruction that its previous electricity reforms have caused for workers, communities and businesses across the country.”

“As Ruapehu Mayor Kirton put it – what’s the use of Prime Minister Luxon touring Asian countries trying to get more investment into NZ when our broken electricity supply system means existing investors are closing mills and leaving the country?”

“The unions thank Mayor Kirton and other Mayors, opposition parties and Hon Shane Jones for joining the fight to keep the mills open.”

Mr Maga said that the unions will immediately start working with the company, local government and iwi and hapū to put in place a redundancy support programme for mill workers and their families.

“We will be calling on MSD and other government agencies to lift their game and provide the support needed for workers, their families and communities within the district,” said Mr Maga.

“It’s a very sad day for affected workers, and the whole community which relies on decent jobs in the area,” said Rachel Mackintosh, E tū National Secretary.

“I know our members have been heartened by the outpouring of community support – people are deeply concerned about their neighbours and the turbulent time ahead for those who will need to find other work.

“Large workplaces in rural areas are often the backbone of their communities. People living in the Ruapehu district have fought hard to protect the mills’ futures, and many will be devastated by the news today.”

Ms Mackintosh says the closure demonstrates a failure of the Government to step up.

“We need to protect local manufacturing. By leaving the industry so vulnerable to the fluctuations of the energy market, there’s a clear risk that we lose opportunities for well-paid work, and damage Aotearoa’s wider productive economy.”

“Mega profits from the partially privatised gentailers, and the lack of an effective strategy for a clean and secure energy future, are huge factors in the closures today. It’s simply not good enough for the Government to let our local industries fail like this – it’s an abdication of responsibility.”

A proposal by Downer Group New Zealand to reduce their power workforce by 12% should set off alarm bells for people concerned about our infrastructure.

The company, which is a major contractor responsible for implementing and maintaining energy infrastructure, is holding meetings with their workforce across the country this week to present their new proposal, which they say is in response to shareholder and investor pressure in the face of uncertain foreseeable work.

A Downer worker, who wishes to remain anonymous for fear of retribution from the company, says the decision is short-sighted and presents real risk to our infrastructure networks.

“We struggle to fill our stand-by rosters now as it is, which has huge implications for the standard of service we can provide,” they say.

“A smaller workforce means people waiting longer when their power goes off. It means taking longer to get to a power pole after a car accident – people could die before we get there to turn off the power.

“If there’s a serious storm, it’s all hands on deck. A smaller workforce at Downer means they’ll have to get in other contractors in that situation, who might charge double for the work. It doesn’t make sense.”

The worker says he’s worried about what these redundancies will mean for workers and their families.

“There are generations of people working in these jobs. Some depos might have an older worker, their kid, and their grandkid at the same place. Job losses on this scale will really hurt families.

“There’s usually work going somewhere, but you might have to up sticks and move somewhere you don’t know anyone. You might get worse pay and conditions. Some guys might bugger off to Australia.”

E tū Negotiation Specialist Joe Gallagher says the proposal shows the model for providing and maintaining this essential infrastructure is broken.

“More and more, we’re seeing the dangerous effects of the competitive contracting model in the delivery of services,” Joe says.

“This is a well-established workforce with a long history of looking after New Zealand’s electricity networks. Having a series of smaller contractors undercutting Downer to win the contracts results in a scattered, less cohesive approach to the delivery and maintenance of the infrastructure.

“The asset owners need to understand what it really takes to keep the lights on, and we’re worried that they are letting some immediate cost-cutting present a real risk not just to the livelihoods of the Downer workforce, but to the very core of New Zealand’s infrastructure.”

Workers at New Zealand Aluminium Smelter at Tiwai Point are celebrating the company Rio Tinto’s new electricity deal with Meridian Energy, finally securing a longer-term future for the plant.

The 20-year deal ends years of uncertainty about Tiwai Point, which is the largest employer in the Southland region and also supports the local economy by providing many opportunities for businesses in the area.

E tū delegate at Tiwai Point, Curtis Omelvena, says workers are thrilled with the news.

“We finally have job security after five years of constantly being threatened with closure,” Curtis says.

“I was wondering what to do if the place closed down, and I would have most likely left Invercargill and even New Zealand altogether. If it did close, I could imagine a lot of us younger workers leaving the area, leading to a big recession in Invercargill.

“It’s a hugely positive thing for the workers and the wider community in Invercargill, especially as the smelter is working hard to clean up the area.

Curits says the uncertainty has taken a big toll on the workforce.

“The last few years have been very trying on our patience and mental health. Morale will start improving from now.”

E tū National Secretary, Rachel Mackintosh, says the economic impact of this decision for the Southland economy is significant.

“The smelter contributes about $400 million to the Southland economy – it is vital for work and business opportunities in the region,” Rachel says.

“E tū members have been working through the uncertainty as best they can. Our union is committed to a Just Transition through economic changes, which means making sure that workers and local communities don’t bear the full brunt of the everchanging future of work.

“It is a big relief that our members at Tiwai Point, and everyone whose work is connected to the smelter, now have some real certainty about the future. We are looking forward to continuing progress on a collective agreement for E tū members at Tiwai, and with the company’s newly improved position, Tiwai workers should expect some real improvement on wages and conditions as a result of their collective activity.”

Members of AWUNZ, E tū, and the PSA have endorsed a multi-union, multi-employer collective agreement that will help improve water services, overcome critical staff shortages, and ensure decent workplaces for everyone working in the industry.

“This is a historic opportunity to work collaboratively with the incoming government to build a workforce that will improve public health,” says Blake Monkley, AWUNZ lead organiser.

“This collective agreement provides career pathways that can attract people to an industry that desperately needs to attract and develop a skilled workforce.”

“Events including widespread flooding, the recent cryptosporidiosis outbreak in Queenstown and sink holes in Auckland show an industry in crisis,” says Ian Gordon, PSA National Sector Lead.

“To respond to this crisis, the country needs a skilled, sustainable water workforce. Without the provisions of this agreement, the industry will keep losing skilled workers it already has and won’t be able to recruit and develop new ones. This agreement is a huge victory for workers and Aotearoa.”

The benefits for workers are clear. “A national employment framework will create clear career paths that will draw people to the industry and keep them there. It will allow the industry to focus on training and developing staff across the industry instead of in isolated pockets,” says Amy Hansen from E tū.

“While negotiating this agreement, it has become increasingly apparent how damaging a fractured approach to employment relations has been to retaining and developing the workforce we need.

“The incoming government needs to recognise how essential the provisions of this agreement are, and it needs to treat workers justly as well, no matter what happens with the water reforms.”

The Amalgamated Workers Union NZ (AWUNZ), E tū, and the Public Service Association Te Pūkenga Here Tikanga Mahi (PSA) represent workers across water management, including technicians, engineers, electricians, administrators, fitters, reticulation workers water, and wastewater treatment operators, local and central government officials, and more.

For two years, the unions worked with members and non-members in the workforce, and the Department of Internal Affairs, to find best path forward. The membership of all three unions have now endorsed this approach by supporting the proposed agreement.

Some useful numbers

• There is currently a shortage of skilled staff with vacancy rates sitting at approximately 15% across the industry
• Economic analysis projects that the industry will need 6,000 to 9,000 jobs over the next 30 years.
• Unions in the sector represent approximately 1850 employees across a wide range of occupations.
• There are currently 87 collective agreements covering impacted workers with a wide range of different conditions.

ENDS

For more information please contact Hamish McCracken (AWUNZ)
Phone: 0212885609
Email: hamish.mccracken@awunz.org.nz

E tū and members working at the New Zealand Steel mill in Glenbrook have welcomed the Government’s offer to contribute funding for a new electric furnace to halve coal use at the site.

On Sunday, the Government announced it would be partially funding up to $140 million to reduce carbon emissions at Glenbrook, by replacing an existing steelmaking furnace and two of its four coal-fuelled furnaces with the electric one.

It means half of the steel produced at the site would be made using electricity to recycle scrap metal, rather than producing new steel using coal and iron sands.

Site delegate Lester Udy says the announcement signals “exciting times” for workers and the company.

“New Zealand Steel contributes a lot to our communities and the area in general,” he says.

“Covid illustrated the importance of having industry in New Zealand, and a lot of other businesses benefit from the fact that we produce our own steel here.

Lester says the move represents a solid strategy for reducing carbon emissions in the steel industry and is a positive step for all industry. But workers still need to be at the forefront, he says.

“The transition also needs to be a Just Transition for workers. It’s about finding new and different ways of production, while at the same time making sure workers keep their jobs.”

E tū Negotiation Specialist Joe Gallagher says the announcement is “huge” for the workforce and local community.

“Jobs at the Glenbrook steel mill are high value jobs and critical to the community, so it’s really important that we support steel made in here in Aotearoa.

“The Government’s announcement is about protecting our local steel-making industry for the future by assisting in the transition to lower carbon steel production.

“It means that we’ll keep business here, rather than pushing it offshore.”

Joe says the funding could be a blueprint for other industries to transform to a low carbon model, which will mean they remain viable as the businesses transform in response to climate change.

However, he says a Just Transition for workers will be needed, including reskilling or upskilling, so they are able to take on the new roles required as technology at the site changes.

This also includes working with suppliers and other businesses who will inevitably be affected.

“We need to work with Government, the company, and workers, to create a Just Transition process that can be modified and adapted for other industries, so we are not able to only protect valuable industry but workers and their communities as well.”

E tū strongly advocates for a Just Transition in the face of a shareholder vote in favour of closing the oil refinery to create an import-only terminal at Marsden Point.

Around 300 workers who are directly employed and several hundred contractors will likely lose their jobs or be affected when their workforce is downsized to just 60 workers, when the refinery becomes a storage facility for imported refined oil.

E tū organiser Annie Tothill says the situation at Marsden Point is similar to Taranaki and Tiwai and a Just Transition proposition is needed in this region.

“The vote by shareholders to close the refinery comes as a blow for a region where unemployment is already high. There’s also the flow-on effect to other local businesses and contractors, which will be significant.

“Marsden Point is facing the same issue as other towns built around manufacturing hubs, and there needs to be a plan to deal with any kind of transition,” she says.

Annie says the carbon footprint of importing refined oil, as well as the impact that closure will have on the country’s fuel security, are also important aspects to consider.

“If we are serious about securing a future for workers and our transition to a carbon-neutral society, then we absolutely need a Just Transition plan for Northland.

“It would require a commitment from shareholders, local and central Government to that transition plan, to manufacture alternative energies with a lower carbon footprint.”

Annie says local Government will also need to review the current resource consent as part of any future Just Transition proposal.

“The resource consent granted to Refining NZ in 2020 for a further 35 years does not seem to be in keeping with the goal of a carbon-neutral society.”

A final decision about the closure will be made by the board in September.

ENDS

For more information and comment:
Annie Tothill, 027 573 4934

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.

On Wednesday afternoon, workers were told the mill will be stopping production from the end of June, with most taking redundancy from 16 July once a clean-up has been completed at the site.

The closure affects about 160 workers, including more than 30 E tū members who work in maintenance.

Delegate and E tū industry spokesperson Bruce Habgood says while there’s relief from some workers that there is more clarity around what their future holds, the sense of loss is real.

“There’s a strong sense of mourning that the mill is shutting down – it’s been a big part of the town’s history for several generations and is the reason Kawerau township was built in the first place.

“While the mill now isn’t the huge employer it used to be, there’s many other businesses that have been created to support it – and they may really suffer ‘death by a thousand cuts’ once the mill’s gone.”

Bruce says the closure highlights the importance of workers being unionised, so that they have access to collective agreements that contain redundancy provisions and protections.

“Some of the workers at the mill are of an age and skillset that means they aren’t so employable anymore and might never work again. We also really need businesses to have their own transition plans going forward so that workers have choices and alternatives.”

Outplacement services will be available to workers, but E tū will be looking at how to formally recognise workers’ skills gained on the job so they can take up other employment opportunities, Bruce says.

E tū organiser Raymond Wheeler says E tū will also be discussing re-skilling and training opportunities for all mill workers.

Having a ‘Just Transition’ plan in place is crucial to ensuring workers have a future when businesses close, and this includes provisions such as social insurance as the Government proposed in Budget 2021, he says.

“A Just Transition is vital, both now and for future generations to come, and is a concept which the Climate Change Commission has recognised is key in transitioning to a low-carbon future.

“We also need to continue to progress the Industry Transformation Plan (ITP) for the forestry and wood processing sector and see what can be done to bring more of the manufacturing supply chain back to Aotearoa New Zealand.”

ENDS

For more information and comment:
Raymond Wheeler, 027 597 5404

Whakatāne Mill will stay open with the sale to the new owner now finalised.

The mill, one of the largest employers in the region, has been bought by The Smurfit Consortium with the buyout announced on Monday.

More than 150 people are employed at the mill, which is long established for producing folding box board and has been running since the 1930s.

Longstanding E tū delegate for 20 years at the site, Robert de Raat, says most are pleased the mill will not be closing.

“There are families where three or four generations have worked at the mill, and people want to see this employment opportunity stay for their kids.”

E tū organiser for Whakatāne Mill, Fiona McQueen, says there’s a sense of relief the months of uncertainty have come to an end.

“People wanted the doors to stay open so that jobs could remain in this community, and we have worked with the company to make sure there’s good outcomes and benefits for all involved.”

Assistant National Secretary for E tū Annie Newman says although the mill’s future is now secure, the upheaval in many industries, due to factors such as globalisation and climate change, highlights the need for a national strategy around the concept of a ‘Just Transition’ for workers.

“We need to ensure the future of work is about decent jobs and income stability – making sure people are prepared for change and have the opportunities to upskill and retrain when needed.

“Their voices also need to be at the heart of creating the solutions that will guide their working futures.”

ENDS