Merger of stationary giants will cost jobs - union

“A proposed merger of US stationary giants OfficeMax and Staples, the two largest office supply companies in New Zealand, will see the destruction of a large number of jobs if it proceeds,” said Robert Reid, General Secretary of FIRST Union.

The US based global investment firm Platinum Equity has recently bought Staples and is now looking to acquire its main competitor, Office Max. Office Max has already taken over Croxley.

“FIRST Union believes this proposed merger / buyout is neither in the public or workers’ interests,” said Reid.

“The union is concerned that as many as 150 Kiwi jobs could go as a result of the merger if it were to go through. It will also eliminate competition in the office supply sector in New Zealand.”

“FIRST Union is calling on the Commerce Commission to investigate the proposed merger and not allow it to proceed. We are aware that in 2015 the Commission granted approval to a merger of these companies, but more evidence of the anti-competitive nature of such a merger has emerged since that decision and the current proposal is very different from the one approved two years ago.”

“These two companies are currently both profitable and viable standalone businesses employing hundreds of workers. It needs to stay that way,” said Reid.

“We understand that there are credible parties that seek to purchase OfficeMax and operate it as a standalone business. Allowing the merger to go ahead makes no sense for the economy or for consumers," said Reid.

ENDS

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