March 28, 2013

Government must protect Tiwai jobs

The union for workers at Tiwai Point aluminium smelter says the Government’s decision to intervene in talks between Meridian and the smelter’s owners is welcome, but the situation should never have been allowed to reach crisis point.

The EPMU has been calling for the Government to intervene in the talks since September last year when it became clear the stalled negotiations were putting the smelter’s future at risk.

In addition, more than 3000 Southlanders have written to the Minister for State Owned Enterprises, Tony Ryall, urging him to ‘Save Our Smelter’ and protect local jobs.

EPMU Director of Organising Alan Clarence says the latest breakdown is an indictment of the Government’s hands-off approach to the economy.

“The talks between Meridian and NZ Aluminium Smelters are clearly at breaking point, and unless the two parties can come to a deal there’s a real chance the smelter will close, devastating Southland’s economy in the process.

“It should ever have got to this stage.

“For nine months now the Government has sat on its hands and refused to intervene in the power deal in any meaningful way, while at the same time allowing the high New Zealand dollar to destroy the smelter’s ability to compete internationally.

“The uncertainty around the smelter’s future has already cost 100 jobs, caused the smelter to cut $70 million of capital expenditure and forced thousands of families to put their lives on hold while they wait for an outcome.

“The Government’s intervention at this late stage is welcome, and we are urging them to do what it takes to resolve the situation and give workers, their families and the entire Southland community some certainty over their futures.

“The Tiwai Point smelter is worth 3200 jobs and $1.6 billion a year to Southland’s economy. It’s simply too important for the Government to allow it to fail.”

ENDS

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