The commercial fishing company told staff on Friday it is opening consultation on a proposal to cut 79 permanent jobs – 57 factory roles and 22 management or office-based roles.
Sealord said this would not affect its deep sea fishing operations nor its canned tuna products.
Chief executive Doug Paulin said increasing costs and requests for higher supermarket margins had driven the decision.
“Unfortunately, like many manufacturing businesses in New Zealand that have been forced to close in recent times, we are similarly affected by hugely challenging economic factors,” Paulin said.
“Increasing operating costs, particularly labour and electricity, plus freight, exacerbated by requests for higher supermarket margins, means we must reconsider the way we manage our retail frozen branded business. Despite the best efforts and mahi of our workers, we may have to exit the frozen coated fish business that we have built up over many years.”
Sealord also announced a proposal for changes to the Nelson Site Collective Agreement that covered union workers in land-based operations including its wetfish factory, cold store, dry store and by-products plant.
“In addition, we’re reviewing land-based factory operations as we look at how we can reduce operating costs and improve the economic sustainability of production in Nelson. As part of this, we are hoping to agree changes to the Collective Agreement that will help keep Nelson land-based manufacturing operating,” Paulin said.
Workers feel like ‘an economic inconvenience’
Sealord workers in Nelson are devastated by the proposal.
It follows the recent closure of the Eves Valley sawmill, and comes alongside a separate push by Sealord management to reduce basic entitlements for other staff across the Nelson site.
E tū delegate Andrew Thompson said the closure announcement had left people feeling shocked, angry, and let down.
“We were told to be more efficient with everything we do, we beat our targets, and now we’re told we’re gone,” Thompson said.
“The company has told us we’re doing a fantastic job, but this still happens. It makes us feel very small – like we’re just an economic inconvenience.
“People are asking how they’re going to pay the mortgage and what this means for their families, including those who have moved here from abroad. For some families it’s not just one income at risk, but several, with relatives also working at Eves Valley.
“It’s really hard to understand how we could be pushed so hard to produce more and more, and then have the rug pulled out from under us.”
Thompson said workers also felt betrayed by the timing of the company’s other proposals.
“We’re disappointed that while this closure is hanging over our heads, the company is also trying to push through reductions to entitlements for new staff. It feels underhanded.”
E tū national secretary Rachel Mackintosh said the proposal was a bitter pill to swallow and another blow to regional manufacturing.
“Sealord doesn’t need to do this,” Mackintosh said.
“This is a shortsighted decision and another sad example of a company that is too willing to send Kiwi jobs overseas in search of greater profit. It’s devastating for the workers, for their families, and for the whole Nelson community that relies on these jobs.
“To make matters worse, Sealord is simultaneously trying to reduce entitlements for other staff at the site. Instead of cutting, they should be investing in their workforce and their community.
“E tū is calling on Sealord to rethink this proposal, listen to their workers, and make the right choice. Nelson deserves good, secure jobs and a company that values its people.”
Nelson Mayor Nick Smith said the loss of 79 jobs was a devastating blow for the region.
“The proposed closure of Sealord’s coated fish factory, with the loss of 79 jobs, is a further devastating blow for region after the damaging storms and closure of the Eves Valley sawmill. 2025 is shaping up as Nelson’s annus horribilis,” he said.
Paulin said affected staff were being encouraged to provide feedback on the proposals.
Sealord was the last significant supplier of frozen coated fish products manufactured in New Zealand, he said.
“Many of our coated factory staff have worked at Sealord for much of their working life and the team is like one big whānau. Our priority at this time is providing support for our people as we work through the process.”
Sealord was weighing up the possibility of moving coated fish production offshore, Paulin said.
Consultation closes in three weeks.
On Thursday, more than 140 workers at Carter Holt Harvey’s Eves Valley sawmill in Tasman were told the plant was closing.
