Seafood giant Sealord is proposing the closure of its coated-fish factory in Nelson.
Its closure would lead to the disestablishment of 79 permanent roles, comprising of 57 factory roles and 22 management or office-based roles that support the factory, Sealord said today.
Sealord has also announced a proposal for changes to the Nelson Site Collective Agreement that covers union workers in land-based operations, including its wetfish factory, cold store, dry store, and by-products plant.
The proposals do not affect Sealord’s deep sea fishing operations and its operating model for its canned tuna products.
Today's announcement followed a 12-month review of Sealord’s business, with expenditure carefully examined, office-based salaried roles disestablished or not replaced, and budgets significantly cut.
Sealord is one of New Zealand's largest seafood companies, specialising in deepwater fishing, seafood processing and aquaculture.
It is half-owned by 57 iwi through Moana New Zealand and half-owned by the Japanese company Nissui.
The company produces a wide range of seafood products.
"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," chief executive officer Doug Paulin said.
"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.
"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."
The company will also be reviewing its 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 the company is also investigating the possibility of processing and packaging coated products using Sealord-caught fish outside New Zealand to continue offering its coated frozen fish range in New Zealand and Australia.
Impacted staff have been encouraged to provide feedback on the proposals, with the consultation period closing on September 26.
A decision will be made in October.
'Rug pulled out from under us'
E tū delegate Andrew Thompson said the closure announcement left workers 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."
Thompson said the shock of the proposal was compounded by the impending closure of the Eves Valley Sawmill in Tasman, impacting 142 jobs.
"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," he said.
"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 were also feeling betrayed by the timing of Sealord's "underhanded" proposal to "push through reductions to entitlements for new staff".
E tū National Secretary Rachel Mackintosh called the proposal a "short-sighted decision" and claimed the company was 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.
"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."
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