Factory to sack 650

Press, 4 June 1988, Page 1

Factory to sack 650

PA Auckland About 650 workers will be laid off by Panelcorp Industries when Fletcher Challenge buys the company from N.Z. Forest Products. Fletcher Panel Industries agreed in January to buy Panelcorp for $B5 million, subject to union acceptance of its working terms and conditions. All Panelcorp staff were to be offered jobs at F.P.I.

However, after meeting N.Z. Forest Products and the combined unions in Auckland, F.P.I. agreed that the sale proceed on the basis of assets only, with all Panelcorp workers being made redundant.

If Panelcorp workers accept a redundancy proposal at meetings at Kinleith today and in Auckland on Tuesday the way will be clear for Fletcher Challenge to buy Panelcorp’s assets.

N.Z. Forest Product’s Panel-, corp redundancy package is based on years of service and the 600 to 650 workers at Panelcorp could expect to share a multi-million-dollar pay-off. The withdrawn F.P.I. job guarantee is a problem : for those workers with little service entitlement. Mr Alan Purdy, chief execu-

tive at F.P.1., said the unions confirmed their rejection of a transitional arrangement put up by FJP.I. which included a compensation payment and continuing employment The parties then agreed that the sale should go.ahead as an asset sale.. Accordingly, all Panelcorp workers were declared redundant ...f' 4

If any Panelcorp workers were then offered jobs at Fletcher Panel Industries they would join under existing terms and conditions agreed to by F.P.I. employees. Panelcorp workers are paid more than their colleagues at F.P.I.

Mr Geoff Camell, chairman of the Panelcorp Penrose site union delegates,, said the unions did not want to discuss the. package put together at yesterday’s meeting untilthey had taken it to their members for approval. .

If union members approved the package, it .would take N.Z. Forest Product’s out of the picture and leave the unions to talk with F.P.I. A meeting was arranged for June 20. The unions sought redundancy under the terms of their agreements with N,Z. Forest Products, claiming it as .a natural conclusion of any sale of Panelcorp.