Town’s pain grows as closedown nears

Press, 1 September 1986, Page 1

Town’s pain grows as closedown nears

PA Auckland The Kawerau mill dispute is costing central North Island communities hundreds of thousands of dollars a day, the “Sunday Star” reports. That does not include the mill workers’ wages or the losses to the Tasman Pulp and Paper Company. Hundreds of workers dependent on the mill face redundancy and relocation as the timber town dispute moves towards the Wednesday shut-down.

Kawerau businesses and related industries are feeling the full brunt of the two-week strike and four-week lock-out, the newspaper reported. The damage so far.—

• Tasman Forestry, Ltd: 130 workers forced to join dole queue, others taking leave.

• Timber workers employed by private contractors: About 200 now out of work.

• Railways: A third of the trade lost; staff being relocated or taking leave.

® Tauranga Harbour Board: Dispute having significant effect on port trade.

• Tasman Shipping: 116 crewmen likely to lose jobs as ships are laid up.

® Bay of Plenty retailers: Staff being laid off as cash registers go silent. Tasman Forestry, Ltd — a subsidiary of Fletcher Challenge like the pulp and paper company — is the mill’s biggest supplier. It employs 600 workers including contractors’ staff. Most of Tasman Forestry’s field work.is done by' outside contractors, each of whom could have equipment valued at $500,000. Contract truckdrivers may be paying off vehicles valued at $250,000 each.

Tasman Forestry’s general manager, Mr Bryce Heard, said the contractors were really hurting. A typical victim was a Rotorua private logging contractor, Mr Sonny Bolstad, who said he was in a bad way. '

Mr Bolstad, a wellknown axeman, said his eight employees had been made redundant and he would also be forced to sign up for the dole. Mr Bolstad signed a new contract with the Kawerau, mill two months ago, but has worked for only three weeks because of the dispute. “We’re bleeding,” he said.

The Railways Corporation’s loss extends through the entire Bay of Plenty area. Trains carry logs to the mill and also newsprint to the Port of Tauranga at” Mount ' Maiinganui.

The Railways assistant general manager, Mr Ewan McQueen, said one train was being run now for every four or five usually needed.

There was no threat of staff being suspended, he said. Some were taking leave and others had been temporarily placed at Tauranga. Tasman Shipping’s general manager, Mr Greg Herbert,, said a decision might be made next week to lay up the company’s two ships, Tasman Venture and Tasman Enterprise. A total of 116 crewmen would lose their jobs. Meanwhile, businesses in Kawerau and right round the Bay of Plenty are feeling the pinch.

The Kawerau Chamber of Commerce president; Mr Mike Simms, said some shops had laid off part-time staff and were considering laying off fulltimers as spending became restricted to necessities.