Around 150 workers at Auckland printing plant Ovato are reportedly "in shock" after being made redundant, with some having worked there for three decades.
According to workers union E tū Ovato announced on Tuesday the workers would be let go from the heatset printing arm of the business in Wiri, which produces products such as commercial catalogues and magazines.
Ovato, whose Christchurch branch closed last September, has been greatly affected by factors such as the global increase in paper prices, reduced demand, and the flow-on effect of Norske Skog, a major paper supplier in Kawerau, shutting.
The company will now only retain a smaller sheetfed production line at its Auckland plant.
In an E tū media release, site delegate Owen Sinclair said the workers are in shock.
“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,” he said.
“We’ll continue to work with the company to make sure we get that clarity for members.”
E tū negotiation specialist Joe Gallagher says the current situation is a "perfect example" of the flow-on effect of ruptured local supply chains.
“When a key player in Ovato’s supply chain – the Kawerau paper mill – closed, this left the company reliant on imported paper.
“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.”
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