Fiji Hardwood Corporation To Lay Off 178 Employees

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Overpriced mill purchases in 2004 leads to closures

By Mereani Gonedua

SUVA, Fiji (Fijilive, June 24, 2013) – 178 Fiji Hardwood Corporation Limited’s Wavunu sawmill and Navutu manufacturing yard workers will be laid off as the two mills closed today.

FHCL in a statement said the mills were closed after a thorough review of their structure plans and due to a financial loss since 2004 both the mills were overpriced when they were purchased from Fenning Pacific Limited for FJ$3.5 million [US$1.8 million] and FJ$2.5 million [US$1.3 million] respectively.

FHCL said the workers will be given 30-days leave of notice and one week’s pay.

The payments given to the workers will be in addition to the paid leave that was granted over the past three weeks for each employee.

The review found that the reinvestment of the mandatory reinvestments of substantial funds that was required to modernize operations was invalid as Fiji Hardwood could not add to more financial burden on the taxpayers.

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