Nick Clark Mercury

CONTRACTORS are being exploited by the forestry industry, a new study shows. But exploitation of contractors over a prolonged period would ultimately be to the detriment of forestry companies, it said. The study, obtained by the Mercury, was compiled for the Tasmanian Forest Contractors Association. It found costs were outstripping contract increases, causing the industry to be unviable for many of the 100 or so operators. The August study comes as the industry is restructured under the pulp-mill wood supply agreement with North-East contractors transferred from Forestry Tasmania to Gunns Ltd control. The TFCA commissioned report author Brian Stafford from IndustryEdge to recommend changes to the current system. The report said employers might get a short-term benefit from “constant exploitation” but it would “ultimately act to their detriment as forest contracting progressively loses its viability”. Diesel prices had doubled since January 2004 and there had been increases in interest rates, wages, tyres and equipment servicing. Read more here

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