Union calls for Just Transition for workers as smelter to close

E tū union is calling for a ‘Just Transition’ for workers in the wake of Rio Tinto’s announcement it will be closing its smelter at Tiwai Point.

Around 1000 workers directly employed by the smelter will be affected, as well as at least a further estimated 1600 workers in the supply chain and local businesses.

Rio Tinto has given notice to terminate its contract with electricity supplier Meridian Energy, which ends in August 2021.

E tū Negotiation Specialist Joe Gallagher says the knock-on effect of the closure will be “huge”.

“This is a significant employer and this company is at the heart of its community. A closure will affect the entire supply chain, including other local suppliers,” he says.

“The smelter produces high grade aluminium and quality jobs for New Zealanders. It doesn’t make sense that as soon as it can’t get energy any cheaper, it abdicates responsibility for its workers.”

Rio Tinto needs to think about the legacy it wants to leave as a company, Joe says.

“To be clear, the closure will have an effect on the whole of Southland.”

Joe says the Government needs to consider a similar approach to that used in Taranaki with the Taranaki 2050 Roadmap, to ensure a Just Transition takes place.

“The Government should use the expertise, knowledge, and methodology that the Taranaki 2050 Roadmap partners have built in the region, but developing it at a much quicker pace for Southland with substantial investment early on.

“It has the opportunity post-COVID-19 to show a pathway forward for a proper, fair and just transition, including enabling workers to retrain or redeploy, while involving them, their communities, and iwi to rebuild better in the region.”