The head of the Nelson Tasman Chamber of Commerce says the recent job losses in the region are the worst she can recall in almost 30 years.
On Friday Sealord announced plans to make part of its fishing operation seasonal, proposing to cut 59 roles.
Sealord chief executive Doug Paulin said it’s been a difficult three years for the company and it’s not the news he wanted to share.
“I know a lot of these people, I’ve worked with them for the 15 years I’ve been at Sealord and it’s incredibly tough. It’s a pretty sh***y thing to have to do.”
It comes after a previous announcement from Sealord earlier this month that it plans to close its coated fish factory, resulting in 79 job losses.
The Eves Valley Sawmill in Tasman will close later this year resulting in 142 job losses and around 65 jobs are expected to go at Proper Crisps if the Nelson factory operations move to Auckland.
Nelson Tasman Chamber of Commerce chief executive Ali Boswijk said it’s been a roller coaster few months for the region.
“I’ve lived in Nelson for 30 years next year and I don’t have any memory of it being like this at all,” she said.
Boswijk said many in the region are holding out for summer as that brings in more seasonal work.
“If it was in the middle of winter, it would be a whole lot harder for sure.”
She said the potential job losses will “absolutely” lead to people leaving the area in search of work.
“If you put yourself in their shoes, you’re going to be looking at every opportunity.”
Paulin said low export prices and rising costs like power and water have made the last three years challenging.
“I do think it’s still going to be a tough year next year and we’re just going to have to wait and see what happens in the world,” he said.
He said Sealord even considered stopping all its land-based operations in Nelson which would have had a huge impact on the region.
“It was a difficult decision because there’s still a gap to what we actually need this part of our business to do, but I’m willing to give it a go.”
Infometrics economist Brad Olsen said there are common issues in some sectors across the country.
“We’re seeing higher operating costs for a lot of manufacturing businesses. At the same time, prices for what those businesses receive for those products aren’t keeping at quite the same pace,” he explained.
“With all of that we’re seeing a consolidation in the manufacturing sector. Nelson Tasman seems to be wearing that hit a whole lot more than other regions.”
