Alliance Party media release FOR IMMEDIATE RELEASE Thursday 8 February 2007

Donate golden handshake to redundant Southland workers, says Alliance

The Alliance Party has suggested that a departing CEO donate her golden handshake to redundant Southland mill workers.

Alliance President Victor Billot says departing Telecom chief executive Theresa Gattung could get a multimillion-dollar payout when she leaves in June, yet workers being made redundant at Southland sawmill Bright Wood will get nothing.

"So in the interests of a fair go, we are suggesting that Theresa donate her handshake to the mill workers who are probably having a hard time of it."

The American-owned mill in Otautau was due to close on 30 January, but now may keep on a few jobs which redundant workers have to reapply for – with the stress and disruption to family life taking its toll.

Mr Billot says there has been a lot of talk lately from both National and Labour about the 'Kiwi Way' and a fair go for all, so it was "time to walk the talk."

"This could set a really good example for other corporate bosses and politicians."

Telecom's last chairman, Roderick Deane, got a golden handshake worth $661,000 from Telecom when he retired in May 2006, Brierley Investments chief executive Paul Collins got $4 million when he resigned in 1998, Gary Toomey got $4.2 million after just nine months as chief executive of Air New Zealand in 2001, James Boonzaier got about $2 million when he was forced out of Tower Corporation in 2002, and Craig Norgate got $1.5 million when his two-year contract as chief executive of Fonterra was not renewed.

The redundant workers at Bright Wood get nothing.

"This is a story about the two faces of New Zealand today – a privileged inner circle who are unaccountable to no one but themselves, and a working people who are tenants in their own country, with no security, no rights and no free lunches."

Mr Billot says it is hard to say why the rumoured payout for Ms Gattung will be so high compared to the mill workers.

"At the moment I'm just hoping that this email gets out, given the performance of our broadband internet in recent times."

The Alliance wants to create a New Zealand where secure jobs and full employment, rather than profits for overseas owners, are the driving force of economic policy.

The Alliance proposes a rise in the minimum wage to $17, ownership of key infrastructure and assets in public hands, a progressive tax system that takes the heat off lower income people, together with public good policies that will help all New Zealanders get education, health care and affordable housing.

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