New Zealand’s rock star economy reputation has taken another blow with the announcement of a Lower Hutt carton factory closing.
Orora Cartons New Zealand has confirmed its intention to gradually wind down its Petone plant in Wellington. By the middle of next year, 62 workers will need to find employment elsewhere.
The closure comes after Orora Cartons biggest customer in Wellington, Unilver, announced that it will close its production site there. Clayton Ford, manager of corporate affairs for Orora Group, points out that closure made Orora’s tenure is uncertain. He adds that the Orora Cartons closure forms part of a restructure that will see its three existing manufacturing sites consolidated into two.
Orora plans to reduce production in Wellington when Unilever ceases production in mid-2015 and gradually shift remaining production to Auckland and Christchurch. The Wellington operation will close by mid-2016. Ford says, “With the proposed transfer of production to Auckland and Christchurch, additional roles would be created across these locations, and the company would actively seek to redeploy skilled and experienced Wellington team members to these roles.”
Ford stresses that the company’s focus remains firmly on supporting its workers through as it works through the proposal.
Joe Gallagher, national industry organiser for EPMU
Joe Gallagher, EPMU industry organiser, says Orora’s situation shows that the country needs a better supported manufacturing sector. He says, “In this case, the loss of one major player is having a massive effect on everyone else. It’s like a house of cards and there is no one to fill the gap. Despite the claims that manufacturing is in growth, on the ground we are just seeing more and more workers losing out.
“The Wellington region will suffer through the loss of highly-skilled, well-paid manufacturing jobs. The regions are taking a hiding.”
Gallagher has already gone on record saying that New Zealand’s rock star economy behaves more like a pub band. He says, “The government needs to intervene; it needs to acknowledge there is a crisis.”
EPMU members at Orora Cartons will receive up to 52 weeks’ redundancy pay under their collective agreement.
