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.