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Redundant workers payout before Christmas

A union representing two-thirds of workers made redundant by the shutdown of a Rotorua sawmill says it has been told workers may still get a final payout before Christmas. Source: Radio New Zealand

Tachikawa Forest Products shut its doors in October.

First Union said former staff received letters from the receiver KordaMentha saying a legal challenge from another forestry company meant their payments would be held up.

A rally for redundant workers was planned for outside Hancock Forest Management’s Rotorua office, but did not go ahead after union members were told the company wasn’t involved in legal action.

First Union general secretary Robert Reid said Hancock Forest Management has told the union it will not seek payment from KordaMentha ahead of the laid-off workers.

He said the receiver has told the union that the payments to workers may be made before Christmas.
First Union, which represents 80 of the 120 people left out of work when Tachikawa closed, and said it had to supply food vouchers for people to get by during the stand down period before they received a benefit.