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Workers hit hard as jobs go at Tenix shipyard

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16 May, 2001Redundancies will take over NZ$2 million a year out of the local economy in wages alone.

NEW ZEALAND: The IMF-affiliated Engineering, Printing and Manufacturing Union reports that the 100 workers at the Tenix shipbuilding yard in Whangarei were informed on May 16 that 45 of them would be laid off on May 18. Tenix, which is manufacturing modules for frigates in Whangarei, had told workers several weeks ago that job losses were likely as work under their frigate building contract with Anzac was nearing an end.
The national secretary for the EPMU, Andrew Little, said although it was known that the work for Anzac would not last forever, it was regrettable that other work had not been found to fill the gap for these highly skilled workers.
With average pay at NZ$50,000 (US$21,234) a year, the job losses will be taking more than NZ$2 million a year out of the local economy in wages alone and contribute to the brain drain there. Little commented that several of the shipyard workers were already going abroad to find work, and others would follow if New Zealand was unable to secure more shipbuilding work.
The collective agreement for the shipyard workers provides up to 12 weeks' redundancy pay.