Sharechat Logo

NZ Refining says proposed strike in October could cost $8-$9M in fees

Tuesday 23rd September 2014

Text too small?

New Zealand Refining, the nation's only oil refinery, said two unions representing 160 of its workers, or about half its workforce, have served notice of a two-day strike next month, a move that could result in $8 million to $9 million of lost processing fees.

First Union and the New Zealand Engineering, Printing and Manufacturing Union gave notice of strike action covering refinery operators, emergency servicemen, mechanical, instrument and maintenance workers, which would amount to a complete withdrawal of labour on October 7 and 8, the Whangarei-based company said. NZ Refining has been in talks with the unions over their collective employment contracts since May and will continue to try to reach agreement, it said.

The strike would require the company to shut down processing units at the Marsden Point Refinery, and given restart times, could result in 11 days of disruption, which could represent "a loss of processing fee revenue which is expected to be in the range of NZD 8-9 million."

NZ Refining has about 300 workers according to its website.

The company would continue to operate the refinery to Auckland pipeline, it said.

NZ Refining shares last traded at $1.65 and have tumbled about 20 percent this year, while the NZX 50 Index gained about 11 percent. The refinery operator's biggest shareholders are the energy companies that use its services - Mobil Oil New Zealand, Z Energy, BP New Zealand Holdings and Chevron New Zealand.

 

 

 

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ANALYSIS: Should penalties for continuous disclosure breaches be relaxed?
Fletcher seeks urgent talks on Ihumatao stalemate
NZ economy grows 0.5% in June quarter, beating expectations
Restaurant Brands lifts 2Q sales; appetite for KFC offsets ditched Starbucks
Auckland jet fuel arrangements a potential barrier to new entrants
NZ dollar weaker after Fed split on outlook for further US cuts
Leading judge says court administration model 'outdated'
MARKET CLOSE: NZ shares fall; Goodman placement sees property stocks sold
NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers

IRG See IRG research reports