Forest Industry Contractors Association
26 May 2006
For Immediate Release
Unconscionable conduct exposed in contract negotiation backdowns
Forest Industry Contractors Association (FICA) claims that unconscionable conduct is rife in the forest industry.
FICA, the national body representing forestry contractors, directs these claims at the management of large forestry
companies, who are refusing to discuss compensation for the increasing costs of diesel fuel that forestry contractors
are forced to absorb.
Spokesman for FICA, John Stulen, said that there is reluctance on the part of forest managers to recognise the true cost
escalations for diesel costs and accuses them of using delaying tactics to avoid coming to the negotiating table with
contractors.
“Forest managers are fully aware of the extra costs being borne by their logging contractors. It is unacceptable that
they use such tactics in the knowledge that the contractors must continue to operate at full production to ensure they
are not in default of other contract stipulations.”
“The crazy part about their indifference to this situation is that they are plainly aware of the provision for fuel cost
increases built into the road transport contracts, which are also negotiated by them.”
Mr Stulen is adamant the practice is allowed to continue because Australian legislation preventing this kind of conduct
has not been implemented in New Zealand. Australian states, such as Victoria, have specific legislation to protect the
livelihood of forest contractors.
Mr Stulen also notes that there is evidence that this conduct is more likely to occur with the larger forest companies.
Small owners, he says, are much more in tune with the financial health of their forest contractors and have generally
responded quickly to the burden on contractors caused by these price increases.
The increase value of fuel has brought another unwelcome occurrence –theft of diesel from contractors’ storage tanks.
The effects of these thefts are two-fold, with valuable time being taken to travel to town for replacement fuel supplies
and to lodge insurance claims.
It all adds up to a grim outlook for a sector of workers who have already been forced to work at less than optimum rates
over the past two to three years, while log export prices have remained low.
However, Mr Stulen is hopeful that pressure from the combined contracting federations around the country will eventually
bring about the changes seen across the ditch.
“Our Australian counterparts present a united front to bring pressure on their forest managers. If we want to see the
same results in this country, then we need to follow their example. We need to fight for law reforms to ensure the
financial wellbeing of our contractors – the sooner the better.”
ENDS