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Union Calls for Action on Energy Pricing

Union officials are urgently seeking government intervention to prevent what they describe as “a significant loss of manufacturing capacity and jobs in New Zealand”.

Photo by Fré Sonneveld / Unsplash

Chris Lynch
Chris Lynch is a journalist, videographer and content producer, broadcasting from his independent news and production company in Christchurch, New Zealand.

FIRST Union is preparing for more challenges this week as rising energy prices continue to affect New Zealand’s manufacturing sector, potentially leading to further job losses across the country.

Union officials are urgently seeking government intervention to prevent what they describe as “a significant loss of manufacturing capacity and jobs in New Zealand”.

The union highlighted last week’s announcements regarding a production pause at Winstone’s pulp and wood mills in the Ruapehu district and the potential closure of OJI Fibre’s Penrose recycling pulp mill in Auckland, both attributed to high energy prices, as reasons for the urgent need for government action.

General secretary Dennis Maga said:

The Government’s response so far has been really disappointing, with ministers seemingly more interested in blaming the previous Labour government rather than addressing the real problem at hand.

The issue is not related to oil and gas exploration but to the unchecked greed of power companies. Ministers must not deflect criticism of energy prices to serve their own ends or engage in pointless political point scoring.

A just transition to renewable energy has been and must remain central to any energy strategy.

Without a clear strategy and measures to curb power companies’ price gouging, our entire manufacturing sector is at risk of being swept away by a tide of redundancies and rising unemployment.

We’re calling on the government to immediately establish an inquiry into the impact of high energy prices on unemployment and the cost of living for workers and businesses.

Workers across all industries are also struggling with the increased power prices at home – $500 or more per month is not an uncommon electricity bill for an average working family, and that is far too high.

This article was originally published by Chris Lynch Media.

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