Around 230 workers at Winstone Pulp International’s (WPI) Karioi Pulpmill and Tangiwai Sawmill are reeling from today’s announcement that WPI will commence consultation over the permanent closure of both mills, primarily due to the high cost of electricity.

FIRST Union and E tū representatives are urging the Government to proactively engage with the future of these mills, regardless of who operates them, so that vital manufacturing infrastructure and jobs aren’t unnecessarily lost in New Zealand due to gentailers’ "profiteering".

WPI announced in the first week of August that the company was pausing activity at the Karioi Pulpmill and Tangiwai Sawmill sites due to high wholesale energy costs. Today, mill workers and union officials attended a meeting with WPI representatives and received confirmation that the 2-week ‘pause’ in activity would continue, with consultation to begin over the permanent closure of both mills and workers informed of potential redundancies ahead.

Liam Malone, FIRST Union organiser for the two sites, said workers were devastated by the proposal but it was not time to give up on our manufacturing industry. He said the union would continue to advocate for these workers over the following two weeks of consultation on the closure proposal.

"WPI have warned that around two hundred and thirty directly-employed jobs could be cut as a result of the possible closure, but there would be further job losses for adjacent staff like contractors and even bigger losses for the wider Ruapehu community, where these mills are the lifeblood of the local economy," said Mr Malone.

Mr Malone said the Government had many options on the table for intervention during the consultation period, including facilitating the entry of a new operator into the mills, putting together a plan to lower wholesale energy prices to counteract gentailers’ "uninhibited" profiteering, and stepping in proactively to protect manufacturing capacity so that the region is not decimated by the loss of the mills.

"The Government was able to step in to save Ruapehu Alpine Lifts with bailout money five times - we want to see the same concern and priority given to these workers, who keep the same region alive throughout the year and consistently prop up the local economy," said Mr Malone.

Daniel Abernethy, an E tū delegate and electrician at the Karioi Pulpmill, said workers were reeling from the news and uncertain about their future employment within the district.

"There is currently no certainty around our futures in the industry locally," said Mr Abernethy.

"It’s heartbreaking for all of us and our families, but we’re not giving up yet. We are hopeful that there may be some intervention from the Government."

Jude Sinai, a worker at the Karioi Pulpmill and FIRST Union delegate, said mill workers were already talking about emigrating to Australia given the lack of comparable manufacturing jobs in the region.

"This can’t be the beginning of the end for manufacturing in New Zealand," said Mr Sinai. "Politicians have put themselves on the line for much less than hundreds of manufacturing jobs in the past."

"This is horrendous not just for us but for all Ruapehu locals - the teachers, schools, doctors, supermarkets, and everyone else in the region who has relied on these mill jobs to support our local economy."

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