A union says the 60 workers at a closing Southland sawmill will not receive any compensation for losing their jobs.
The American company which owns Bright Wood mill in Otautau plan to shut it down in June, due to the recession.
The company says it could not see the mill turning a profit for the next 12 to 18 months because of a global oversupply of timber and a lack of demand.
The Engineering, Printing and Manufacturing Union says the 60 workers laid off will have untaken leave paid out but nothing else.
The union understands workers are on individual contracts without redundancy clauses.
Southland District Mayor Frana Cardno says no-one was given any warning of the closure and she is disappointed with the way it has happened.
Ms Cardno says the pine timber produced at the plant will be needed in future and she hopes the mill can be reopened when the market recovers.
