Kinleith mill closure shows need for industrial strategy – CTU
NZCTU Te Kauae Kaimahi President Richard Wagstaff is calling on the Government to deliver an economic and industrial strategy for regional manufacturing, rather than just expressing sympathy for job losses, following the announced closure of Kinleith mill in Tokoroa.
“The closure Kinleith mill in Tokoroa is not just devastating for the 230 workers and their families, it is another major blow to regional manufacturing in Aotearoa New Zealand,” said Wagstaff.
“Over the last several months we have seen significant job losses in the regional manufacturing sector, with worksites closing around the country.
“The Government’s failure to step in and protect these communities demonstrates their lack of concern for regional New Zealand and the care for workers and their whānau.
“This is not about crudely subsidising and giving handouts to particular companies, it’s about putting forward an economic and industrial strategy that supports industries and regions to protect and generate good jobs and create full employment for working people.
“What’s needed is a government that is willing to show leadership on economic development by working with industry and unions to deliver good work and high living standards for all.
“Workers also deserve active support when they lose their jobs, not just sympathy. That’s why for years we have been calling on successive governments to adopt a social insurance scheme that would protect workers through redundancy.
“We haven’t seen ministers lift a finger for any of the workers who lost their jobs in this sector, and yet they will support landlords and higher income earners with billions of dollars’ worth of tax cuts.
“Unless the Government responds to the pain that regional communities are experiencing with active industrial policy, we are going to continue to see the loss of more and more manufacturing jobs in this country,” said Wagstaff.
I think this was owned by the government back in the day .This government can and will not lift a finger to save a failing business .Sadly the last 40 years of corporate greed has ruined the economy .We have had takeovers that have been marketed as growing market share and therefor seen as growth of the business .But in reality the growth in the industry has not been a reality .Then as in this case the new owner has to exit because they have bought more debt and no growth in real income .A lot of companies have been bought,stripped of the best parts and the skeleton is then on sold to an unsuspecting buyer who has not done the checks and balances properly .
In this case I can agree with your analysis of the situation Gordon. Not enough has been done to upgrade aging plant and retrain staff .