Hundreds of jobs are on the line at a meat processing plant in Timaru.
A proposal to close the Smithfield plant in Canterbury has been tabled by Alliance Group.
Employees were told at a meeting today.
About 600 staff are affected by the proposal, a statement from Alliance Group said.
“If the proposal is confirmed following a consultation process, impacted staff, wherever possible, would be offered the opportunity to apply for re-deployment at the company’s other processing plants, however it is anticipated there would be a significant number of redundancies,” the company said.
“If the proposal is confirmed, sheep meat, calves and night shift venison processing would cease at the Smithfield plant.
“Alliance would continue venison processing at the plant until no later than the end of December, by which time the company expects to have alternative arrangements in place for deer.”
Alliance has owned the plant since 1989.
Alliance chief executive Willie Wiese said: “This proposal aims to align our operations with current livestock availability, ensuring we have the right scale and cost structure to meet future demands as a leading red meat processor.
“By optimising our capacity to match livestock flows, we can position ourselves for long-term success and reduce our cost base.
“We simply cannot maintain excess processing capacity when livestock numbers don’t support it.”
The 139-year-old plant is the company’s oldest site and required “significant” investment to keep it operational, he said.
It also faces “encroachment” from retail development.
“We know our people at Smithfield, their colleagues and the local community will be devastated by this proposal,” Wiese said.
“Our priority is to support affected employees during this immensely difficult period.
“We will also work closely with local authorities and support agencies and ensure the local community is informed, supported, and included in discussions.”
Alliance posted a loss of $97.9 million before tax for the year ending September 2023.
“Despite everyone’s best efforts, these challenging conditions have persisted into 2024,” Wiese said.
The company believed it can process sheep, deer and cattle at its four other South Island plants during peak season.
“Consultation will run until October 11 and a final decision is expected to be made by October 18.”
Workers, politicians react
One worker told 1News they felt “a bit let down by management”.
“Has anyone from corporate lost their jobs?”
Asked how today’s meeting went, another worker said: “Not good.”
Another added: “The rumour’s been going around for quite some time.
“It’s pretty shocking to see it’s come to fruition.”
Timaru Mayor Nigel Bowen told 1News he’s “absolutely gutted” for the community.
“It’s absolutely massive, we haven’t had a shock like this for some time,” he said.
“It’ll have some massive effects for some time to come.”
The Smithfield plant is one of the largest employers in Canterbury. (Source: 1News)
Rangitata MP James Meager said in a statement on Facebook that he was “absolutely gutted” that Smithfield was closing.
“My office is here to help all workers and families affected.”
Labour list MP Jo Luxton, who is based in the Rangitata electorate, described the news as “distressing”.
“These workers contribute to the local economy and businesses, and many have family nearby. Closure would mean some of them have to make the difficult decision to take redundancy or leave the area.”
Labour workplace relations spokesperson Camilla Belich said the Government was “ignoring the plight of workers” and accused it of “sitting on its hands”.
“The Government has chosen to lay off 6000 public servants, has not done anything to help hundreds of workers in the manufacturing sector, and has cancelled Jobs for Nature and reduced funding for Apprenticeship Boost – programmes that help create jobs in our regions.
“The Government needs to stand up for workers and see the value in keeping people in jobs.”
