100 timber jobs facing the chop
Up to 100 Gisborne jobs could go as JNL, a wood processing company, begins consulting on a proposal to nearly halve its workforce at its Gisborne mill, the firm says.
First Union president Robert Reid said businesses did not make such proposals unless they were serious about them.
‘‘Although this is a proposal for consultation at this stage we all know that companies don’t make such proposals unless they’re serious about them.’’
In a meeting on Tuesday JNL proposed shutting down its LVL (plywood) production in Gisborne with a loss of 97 jobs from its 205-strong workforce.
The mill at Matawhero employs around 200 fulltime staff. It mainly processes wood for the Japanese market.
JNL general manager Dave Hilliard said Japanese demand for plywood and other building products had fallen significantly in the past few years because of a declining housing market.
This has caused parts of the New Zealand processing business to operate at a loss, he said.
‘‘The Japanese housing market has been in decline and future demand for these products is not expected to improve because of the ageing population in Japan.’’
Hilliard said the company was also increasingly unable to compete against large-scale wood processing plants from China and South America.
The company had made efforts to increase sales locally and in Australia to reduce its dependence on Japan but ‘‘production capability and product mix doesn’t match the volume and price required by customers’’.
Around 100 fulltime positions would remain at the Gisborne site to sustain investment in highervalue residential and commercial products.
Hilliard said the proposed changes would have no impact on JNL’s forestry operations.
A final decision would be announced to staff on February 12.
Reid said a shutdown of LVL production would be ‘‘devastating’’.
‘‘Lots of families have multiple members who work at the mill. For others, although wages aren’t great, it’s the difference between being in poverty or not.’’
Reid blamed the previous National Government’s ‘‘neglectful, market-driven, hands-off approach’’ for the flow of 3 million tonnes of ‘‘raw logs’’ a year leaving the Gisborne wharf to be processed elsewhere.
‘‘The downsizing of the JNL mill would see even more raw logs and therefore jobs shipped overseas every year.’’
He said the announcement is also a blow to the new Government’s forestry, regional development and employment strategy.
JNL was the only significant wood processor left in the city, and its downsizing constituted a ‘‘market failure’’.
‘‘The Government needs to intervene to address the market failure and promote a sustainable social and economic plan for the region’s forestry industry,’’ Reid said.
‘‘Before the election Labour promised to create more jobs in the region’s wood sector, announcing a $20 million proposal to establish a prefab mill in Gisborne. Fast-tracking this and other job creation proposals must be a priority.’’
Both NZ First and the Greens had similar policies.
Charges laid over steel mesh
The Commerce Commission has laid charges against EuroSteel for making false and misleading representations about a steel mesh product. The 59 charges were filed in the Auckland District Court and cover the period from 2012 to 2015. The watchdog alleges EuroSteel represented on product labels, identification tags and its website that its SE615 steel mesh was 500E grade steel when it was not, as it did not comply with the requirements in the Australian and New Zealand Standard. Steel mesh is typically used as reinforcement in concrete floor slabs, driveways or pathways, and must meet elasticity requirements in case of earthquakes. In addition to the charges laid against EuroSteel, the commission has laid charges against another company, but would not comment on that.
Facebook should pay: mogul
Media mogul Rupert Murdoch says Facebook should pay fees to ‘‘trusted’’ news producers for their content. Murdoch, whose companies own The Wall Street Journal, Fox News and other media properties, said on Monday that publishers were ‘‘enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services’’. Murdoch has previously criticised Google for the ‘‘theft’’ of news stories. Facebook and Google dominate online, together taking nearly half of global digital advertising revenue, according to eMarketer.
Investments boost income
Last year New Zealand households earned more than $14,000 on average from their investments, an increase of nearly $6000 over a decade. That compares with average household income of $98,621 last year, up almost $30,000 on 2007. Investments include rents from Ma¯ori land or other leased land, New Zealand company dividends, royalties, and earnings from cash, bonds and stocks. On average, if investment habits continue to rise this year, annual investment income could double that from 10 years ago.