Category: Engineering, Infrastructure, and Extractions

Buying local and supporting local businesses is more important than ever, E tū says, in the wake of up to 200 redundancies proposed by BlueScope Steel.

On Thursday, the Australian-owned company who has New Zealand’s NZ Steel in Glenbrook and Pacific Steel in Otahuhu, announced its proposal to make between 150 to 200 workers redundant.

BlueScope aims to cut up to around NZ$54 million in costs, after their A$5.8 million full-year operating loss. However, they have now ruled out the closure of either Kiwi plant.

E tū member Lance Gush says members have a good collective agreement with strong terms and conditions to deal with the consultation process.

“Now it’s about maintaining what we can, working through the process to consult with the company, and minimising the impact on workers to get an outcome that’s good for everyone.

“We understand role we play in the structure of the local community and groups. We understand the business also needs to make a profit. We all want to be part of a successful business – it’s about how we do that together for the future.”

E tū negotiation specialist Joe Gallagher says the consultation process will take around seven weeks, as the collective agreement means the company is required to go through an “extensive” process with members around redundancy.

“We’re arguing the company needs to maintain workers’ incomes, their hours of work, and by any means necessary, to minimise job losses.”

While it’s some comfort that complete closure is off the cards, there is a ‘supply chain effect’ when people lose their jobs, which will not only harm the economy but many New Zealand communities, Joe says.

“For every $100 it takes to make to steel, $80 goes back into our economy – that’s a huge amount, compared to the $5 return from imported steel.

“Any redundancies will have a supply chain effect which will impact many industries, including manufacturing and construction. We’ve got to support local as well – that means cafes, gyms, and other small businesses – this is what keeps our communities alive,” Joe says.

“We have to do whatever it takes to keep local businesses going – big and small – and support each other to get through this.”

ENDS

For more information and comment:
Joe Gallagher, 027 591 0015

Keeping local jobs as part of the New Zealand construction industry supply chain is essential, E tū union says, after the announcement of proposed redundancies by BlueScope Steel.

On Monday, the Australian-owned company warned of its plans to lay off “a substantial number” of staff as it reduces the scale of its New Zealand sites in Otahuhu and Glenbrook.

It reported a full-year operating loss of A$5.8 million for its operations in New Zealand and the Pacific Islands and has not ruled out complete closure of its Glenbrook mill.

E tū member Lance Gush, who works at New Zealand Steel’s Glenbrook mill, says while the extent of the redundancies isn’t yet known, the situation was causing anxiety for workers.

“We’ve seen press releases in Australian papers talking about mass redundancies, and it’s very concerning. The lack of information makes that worse,” he says.

“Obviously, this business is an extremely important landmark in the Glenbrook community and surrounding communities. Any layoffs would have a huge impact on the area.”

Lance says other redundancies, including voluntary redundancy and redeployment of workers, affecting up to 60 staff at Glenbrook were only formally confirmed on Friday last week.

E tū negotiation specialist Joe Gallagher says while the union acknowledges the “significant headwinds” faced by the company, such as power, carbon emissions and the competitive prices of imported steel, keeping local jobs was essential.

“Glenbrook is the only mill in the country that produces steel, and it’s really valuable to our economy. This business contributes to 1% of our GDP, with a direct benefit to the community of more than $135 million per year,” Joe says.

“One in four workers in the Glenbrook community are employed at the mill, and we’d like to see a guarantee from the Government that will ensure local procurement.”

Joe says retaining steel production onshore will keep the New Zealand construction industry strong and keep valuable production lines open, rather than relying exclusively on imported steel.

ENDS

For more information and comment:
Joe Gallagher, 027 591 0015

E tū union is calling for a ‘Just Transition’ for workers in the wake of Rio Tinto’s announcement it will be closing its smelter at Tiwai Point.

Around 1000 workers directly employed by the smelter will be affected, as well as at least a further estimated 1600 workers in the supply chain and local businesses.

Rio Tinto has given notice to terminate its contract with electricity supplier Meridian Energy, which ends in August 2021.

E tū Negotiation Specialist Joe Gallagher says the knock-on effect of the closure will be “huge”.

“This is a significant employer and this company is at the heart of its community. A closure will affect the entire supply chain, including other local suppliers,” he says.

“The smelter produces high grade aluminium and quality jobs for New Zealanders. It doesn’t make sense that as soon as it can’t get energy any cheaper, it abdicates responsibility for its workers.”

Rio Tinto needs to think about the legacy it wants to leave as a company, Joe says.

“To be clear, the closure will have an effect on the whole of Southland.”

Joe says the Government needs to consider a similar approach to that used in Taranaki with the Taranaki 2050 Roadmap, to ensure a Just Transition takes place.

“The Government should use the expertise, knowledge, and methodology that the Taranaki 2050 Roadmap partners have built in the region, but developing it at a much quicker pace for Southland with substantial investment early on.

“It has the opportunity post-COVID-19 to show a pathway forward for a proper, fair and just transition, including enabling workers to retrain or redeploy, while involving them, their communities, and iwi to rebuild better in the region.”

ENDS

For more information and comment:
Joe Gallagher, 027 591 0015

Workers are devastated at a restructure proposal which could see more than two-thirds of their team made redundant at Carter Holt Harvey’s remaining Northland timber plant.

In May, the company proposed to cut 68% of its production roles from 241 down to just 77 at their Laminated Veneer Lumber (LVL) plant at Marsden Point, as part of a plan to abandon export sales and focus on domestic supply only.

Despite LVL receiving around $2.2 million in wage subsidies in the first week of April, workers were forced to use, on average, two weeks of their annual leave during the Level 4 lockdown.

Some workers, who had little or no leave, now face a zero or negative leave balance and redundancy. The company also confirmed it has not ruled out complete closure of the plant.

E tū Industry Councillor Glen Chaplin visited Carter Holt Harvey workers last week and says they are completely demoralised by the proposed redundancy.

“Workers are really devastated and deflated. They don’t know what to do next and don’t necessarily see a path forward for getting other work,” Glen says.

“It’s decision which would potentially leave two-thirds of their workforce out of jobs in an area that’s already economically depressed.”

E tū organiser Annie Tothill says the timing of the proposed cuts is “brutal”.

“The harvesting of workers’ leave means some workers will have nothing left of their leave balance to help support a period of redundancy.

“It is in everyone’s best interest that the wage subsidy is used as intended – for the workers – and we urge Carter Holt Harvey to use the 12-week subsidy to cover the cost of reinstating all that leave to all their workers now.”

Annie says with a number of employers in manufacturing and infrastructure issuing restructure notices with potential redundancies, the Government needs to step in quickly for communities to have justice and to prevent a self-fulfilling cycle of job loss and economic downturn.

It also needs to create an accountable pathway for the timber manufacturing industry to thrive again, including exports, Annie says.

“To rebuild better, we need to keep and increase the number of decent jobs in New Zealand. The jobs at Carter Holt Harvey are good, sustainable manufacturing jobs that provide for hundreds of workers and their families, indeed the whole community.”

The company will announce their decision on 8 June.

ENDS

For more information and comment:
Annie Tothill 027 573 4934

Up to 1000 workers at Fletchers are facing possible redundancy, after having already been on reduced pay during lockdown.

Since early April, workers have been on a 12-week pay reduction plan, which saw them receiving less than their normal weekly income – a change over which they say they were not properly consulted.

E tū understands employees now back at work are on reduced days and hours.

To add insult to injury, Fletchers has now announced a proposal to cull up to 1000 New Zealand workers, about 10% of their workforce.

Fletchers received almost $68 million from the Government’s wage subsidy scheme.

E tū Negotiation Specialist Joe Gallagher says to rebuild better, New Zealand needs to keep and create decent jobs.

“This means secure employment especially for the critical infrastructure workers we desperately need to recover our economy.”

E tū’s representative for engineering and infrastructure on the National Executive, Bruce Habgood, says the rebuild needs to be about people over profits.

“We’re calling on the Government to step in and ensure we keep Kiwi jobs in New Zealand.

“It’s about allowing the economy to recover justly,” Bruce says.

ENDS

For more information and comment:
Joe Gallagher 027 591 0015

E tū officials met with Fletcher and subsidiary company representatives to discuss the Bridging Pay Programme (BPP) they proposed and the consultation packet they have sent to workers who did not agree to the BPP by the company’s short time frames.

None of the options the company has offered in the packet are good enough in our view, and given the pressure of agreeing to something or potentially not having enough income for your needs, we view any choice you make as under duress.  However, we encourage you to do what works best for you so you have money to live.  You need to select the option that’s best for you in a bad situation.

E tū will continue to pursue all avenues to try to improve the situation for members and your families now and continuing after the lockdown.  Union reps have met with the company and been very clear that we will raise our deep concerns at all levels, including with MBIE, who we have now contacted.

Our understanding from the company is that those who did not agree before the company cut off to the BPP can still do so, and you also have access to the other options the company outlined in the consultation packs.  After you discuss the option that works best for you with your manager, if the company tells you that option isn’t available for you, please get that in writing and talk to your delegate.