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.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Steel & Tube Fy20 Trading Update
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020

IRG See IRG research reports