Economy
Forestry: Contracts furore
NICK CLARK, Mercury
FOREST contractors are being forced to lay off staff because of unfair contracts, it has been claimed.
The Tasmanian Forest Contractors Association says Forestry Tasmania’s and Gunns Limited’s contracts had no quota guarantees.
Chief executive officer Ferdie Kroon said the contracts provided no certainty of income to service loans for equipment.
“Requests for contract amendments are being met with ‘take it or leave it’ from two of the major principals,” Mr Kroon said.
The contractor concerns come amid a significant downturn in the forestry industry.
Gunns is shutting its three woodchip mills for two of the next five weeks because of a woodchip market downturn.
Some contractors are handling as little as 40 per cent of their usual quota of logs yet have million dollar loans.
Mr Kroon said an East Coast contracting firm had reduced staff after a request for a fairer contract was rejected.