Easysteel workers ‘stunned’ by proposal

Workers at Fletcher Building subsidiary Easysteel are “stunned” by a restructuring proposal their union says could be the first of many cost-cutting measures across Fletcher brands.

The current proposal would mean job losses across Easysteel operations in Auckland, Hawke’s Bay and Christchurch, as well as reductions in administration, and a centralisation of some inventory, production and distribution functions.

While Fletcher has blamed market conditions for the restructure, First Union organiser Justin Wallace said the situation was the result of “years of top-down mismanagement”, including profit being taken from the business to pay “huge” executive salaries.

“Fletcher’s Easysteel are blaming everything from customer markets, inflation and the economic outlook for this cost-cutting restructure, but the truth is that it’s a tragedy entirely of their own making,” he said.

In February, Fletcher Building announced a first-half loss of $120 million, followed by the resignations of chief executive Ross Taylor and board chairperson Bruce Hassall.

Taylor cited cost blowouts at SkyCity’s Auckland convention centre and “materially weaker” trading conditions for the business’ poor performance.

Fletcher Building chief financial officer Bevan McKenzie also announced his resignation earlier this month.

About 50 Easysteel workers were members of First Union and E Tū, and while many of the staff likely to be made redundant were non-unionised, the risk was that Easysteel was the first of many Fletcher Building brands to begin cost-cutting measures, Wallace said.

“This is an historic embarrassment and an indictment of Fletcher’s mismanagement of its subsidiaries, and workers should not be paying for executives’ greed.”

Wallace said First Union and E Tū would support Easysteel union members through the consultation period, which finishes on May 6, and restructuring.