A leaked email warns more than 100 staff of impending “change”, despite assurances from the chief executive to the Otago Daily Times that no decisions have been made.
Talley’s Group-owned Open Country, New Zealand’s second-largest milk processor, formally became owners of the Gore processing facility on October 31.
The following Monday, a company-wide email from chief executive Mark de Latour said that there was “no doubt” that change needed to happen to ensure “profitability”.
The plant’s structure was currently under review, and they planned to propose initial changes in 7-10 days.
“I understand this is an uncertain time,” he wrote.
“… Any change we propose will follow a fair and proper process, and … we will communicate with you early and openly.”
The email also called for a staying of any new recruits.
“Until we have developed a clear understanding of the impact and contribution of each role, no recruitment should be undertaken,” he said.
One of the plant’s 100-200 employees, who wished not to be named, told the ODT: “everybody’s worried about their jobs”.
He said, having worked at other milk plants, it was the “top heavy” office and other managerial departments that would be the first on the chopping block.
Despite not working in those areas, he was not waiting to find out and already had another job interview since receiving Monday’s email.
“Obviously, it needed some restructuring,” he said.
“It needed to make money. But I would rather stay where I was.”
Mr de Latour told the ODT they were evaluating how to best integrate the plant into their organisation.
He would not comment further on upcoming production changes and the jobs that would be lost.
“Any proposals or ideas will be communicated and consulted with staff prior to any media statement,” he said.
While unwilling to speculate, Gore District Mayor Ben Bell said the farming hub was used to changes in business.
“It’s not unusual, as jobs go away, others appear,” he said.
This was why, during his electoral campaign, he promised to do more to attract industry to the district.
“We want to bring more businesses like Mataura Valley Milk, so that when these sorts of things do happen, we don’t really feel the impact as much,” he said.
First opened in 2018, a2 Milk Company bought a majority of shares in the processing facility in 2021.
Mr Bell said it took a while for a2 to take over, but he remembered restructuring in the years that followed.
“The general manager and all of the senior management team got changed,” he said.
