'Some have worked here for between 20-30 years'
About 150 workers of the Auckland-based printing plant Ovato will be made redundant, according to the E tū union, after the company announced it will be shutting down its business in Wiri.
The union said the Ovato management announced that a large proportion of the production of its heatset printing arm of the business in Wiri will stop for good at the end of April.
In effect, the workers, 60% of whom are members the E tū union, will lose their jobs.
"Some have worked here for between 20-30 years. People are now going to have to work through what their entitlements are and when they’re going to finish," said site delegate Owen Sinclair, adding that workers are in shock over the announcement.
"We'll continue to work with the company to make sure we get that clarity for members," added Sinclair.
Ovato managing director Paul Gardiner told Stuff that the laying off will be across the company, including the executive level, adding that only 50 staff members will remain by May.
According to Joe Gallagher, E tū negotiation specialist, the situation underscores the importance of Just Transition plans to protect employees amid closures.
"A Just Transition means things like creating plans for workers to retrain if necessary and to support them to transfer their existing skills to other roles," said Gallagher in a statement.
Initiatives such as the government's proposal for a national income insurance scheme, New Zealand Income Insurance, could also assist with this," he added.
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Gallagher said that workers and companies need to work together so they can get the best outcome for employees, while certain industries wind down and others ramp up.
The reason for the shutdown in the Wiri plant has not been disclosed, but the E tū union said the company has been "greatly affected" by factors including the global increase in paper prices, reduced demand, and the flow-in effect of Norske Skog, a major paper supplier in Kawerau, shutting.
"When a key player in Ovato's supply chain – the Kawerau paper mill – closed, this left the company reliant on imported paper," explained Gallagher.
"Importing paper is not only expensive due to the huge increase in shipping costs, but there's around a seven-month wait time to get paper from Europe."
According to Gallagher, companies also face the risk that shipping costs could increase while in transit because of COVID-19.
The situation with Ovato came after the company also shuttered its Christchurch branch in September 2021.
