New Zealand food manufacturing giant Heinz Wattie’s Limited is today proposing to discontinue the sale and production of its frozen vegetables, Gregg's coffee and a range of dips, impacting approximately 350 jobs.
"Today, Heinz Wattie’s Limited announced proposed changes to certain areas of its New Zealand business as part of the company’s shift to focus on its long-term strategy," the company said this afternoon.
"After careful consideration, the company is proposing to discontinue sale and production of frozen vegetables and Gregg’s coffee, as well as dips sold primarily under Mediterranean, Just Hummus and Good Taste Company brands. These products would be phased out over the course of the year."
Kiwi kitchen staples to be phased out as Heinz Wattie's proposes closure - Watch on TVNZ+
The union representing employees said the proposed closures would have "severe" impacts on the workers and their families.
The proposal would lead to the closure of three manufacturing facilities located in Auckland, Christchurch and Dunedin. Packing would also cease at the associated frozen lines in King St, Hastings.
"Approximately 350 roles are expected to be impacted as a result of the proposed site closures and other changes across the business. The final number would be confirmed following consultation and consideration of redeployment opportunities."
The food manufacturing giant is also considering stopping production and sales Gregg's coffee and dips. (Source: 1News)
"We are deeply aware of the impact this would have on our people, their families, our growers and suppliers, and the communities we have been part of for many years. These are people who have helped build this business over decades, and our priority now is supporting them," Heinz Wattie's managing director Andrew Donegan said.
"The decision to start this process was not taken lightly. Numerous alternatives and options were explored before reaching this phase. It is a necessary step to position our company for the future."
Growers said more overseas competition entered the sector after Cyclone Gabrielle. (Source: 1News)
Heinz Wattie's said the manufacturing environment in New Zealand was become "increasingly difficult" in recent years amid high inflation worldwide and industry challenges, placing "ongoing pressure" on its commercial performance.
The business would continue to work closely with employees, union representatives, growers, suppliers, retail partners and other local stakeholders throughout the consultation period, it said.
'Nowhere else to go'
A delegate for trade union E tū says she's "gutted" for her colleagues – some at retirement age – facing the prospect of losing their jobs after years of service.
Kathy Perrin, who has worked various roles at Heinz Wattie's for 46 years, said the "devastating financial and emotional impact on my colleagues cannot be overstated".
"The average length of service is around 30 years. There is nowhere else to go.
"We're all disappointed with how Heinz Wattie's have handled this."
Perrin said the company had also "let down" long-serving seasonal workers who would be "made redundant without financial compensation".
"The company should be making sure they receive compensation, and that a fair process is followed supporting those who will be impacted by this change."
Impact on workers and their whānau 'will be severe'
Hundreds of jobs in the Nelson-Tasman region could go as businesses cut costs. (Source: 1News)
E tū director Finn O'Dwyer-Cunliffe said the workers had "given decades of their lives to this company" – and for many, it's "the only job they've known".
"The impact on them and their families will be severe."
He added that it wasn't just factory workers facing an uncertain future, adding that "the ripple effects of these closures will be felt across entire communities". Around 220 growers in the Canterbury region alone supply the Christchurch site.
The proposed closures was just the latest in a "unfortunately familiar pattern of local manufacturing shutting down across Aotearoa", O'Dwyer-Cunliffe said. "We've seen it with Carter Holt Harvey at Eves Valley, Sealord in Nelson, Kinleith Pulp and Paper, and now Heinz Wattie's. It's a trend that is deeply damaging to workers, to communities, and to the country."
He called for Aotearoa to produce more food locally – not less.
"We should be investing in local manufacturing, keeping people employed, and strengthening our food security. Instead, we're watching iconic New Zealand brands disappear from our production lines. That's not good for workers, it's not good for regional economies, and it's not good for the country," he said.
"The Government has been asleep at the wheel while local manufacturing collapses around the country. These are market failures that demand a response, and working people deserve better than a Government that shrugs its shoulders while good jobs disappear."
O'Dwyer-Cunliffe said E tū would be "fighting to make sure every affected worker gets a fair deal".
"Heinz Wattie's talks about generous redundancy packages, but seasonal workers who have given years to this company could be made redundant without compensation. That is not acceptable."
1News sought reaction to the proposed closures from the Government this afternoon. A spokesperson for the Finance Minister directed 1News to a statement last month that welcomed Stats NZ data showing an additional 15,000 people gaining jobs in the final three months of last year.
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