Workers at Heinz Wattie's are "absolutely gutted" by sweeping changes announced by the company yesterday.
Yesterday afternoon, the company announced production of frozen vegetables, Greg's coffee, and hummus were proposed to be discontinued – a move expected to affect 350 jobs nationwide.
The subsidiary of US-listed The Kraft Heinz Company said it planned to close its Christchurch factory, which produced frozen veges, alongside sites in Auckland 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 company said.
Kiwi kitchen staples could be phased out as Heinz Wattie's proposes closure - watch on TVNZ+
In a statement last night, a spokesperson said the company understood "how difficult this is for employees".
"Many have been with us for years, some for generations. We are also aware of how this proposal may affect not only them, but their families and communities. Our focus is providing care, respect and support for our people at this time."
They said where possible, redeployment within the business would be offered.
"We will also provide career transition support to help employees explore new opportunities and help set them up for their next step," the spokesperson said.
"What we’re proposing is about keeping Wattie’s strong and sustainable in a very challenging environment. Wattie’s would remain a major employer with hundreds of products made here in New Zealand and exported to markets like Australia, Japan and the Pacific Islands."
A 'perfect storm' of factors – managing director
Managing director Andrew Donegan told 1News today that the leadership team had worked "extensively" on the proposal.
"Obviously we have tried every different way to avoid [this decision]," he said.
Donegan said his role was unaffected by the proposed changes, and that the business as a whole was "going to survive".
"It's important that people know that although this is a really large change, and a really difficult change for us... we're still a large business, we still sell close to 1000 products to consumers everyday and we'll represent local products manufactured in New Zealand of about 85%."
He said increasing utility, gas, and electricity prices and tough crop seasons, alongside global financial pressures had amounted to "the perfect storm".
"The cost of living crisis has hit Kiwis, and we know they're doing it tough at the supermarket," he said.
Speaking from outside the Christchurch factory this morning, control systems engineer Myles Morris told 1News he was "absolutely appalled" when he received the "cold" and "clinical" email, calling a meeting for 1pm.
"I was really gutted for those people who had been 30 or 40 years. You know, this is their life," he told 1News.
"I just feel really sorry for all the farmers, all the extended farmers... there are lots of farmers who supply this place and this is going to be a big impact for Canterbury as a whole, I think it's going to ripple through the community. It's not just these people impacted, but their extended families as well."
Morris said he was "right in the middle of making a real positive impact here, and bringing some real change to this place and the efficiency of the control systems".
'A hell of a shock' - union
E tū director Finn O’Dwyer-Cunliffe told Breakfast workers were "pretty gutted by this", and were "just trying to process everything".
"It came as a hell of a shock yesterday afternoon at our sites affected across Aotearoa, so yeah they're not in the best place right now."
"It was very much from left field. Any discussions that were held prior to it weren't discussions that included the workers anyway. So yeah we're disappointed its coming to this."
"Obviously it's just a proposed change at this stage, but you know, a significant thing to be closing down major elements of the business."
He said the union would do "whatever we can to propose alternatives"
"But when a company like this decides it wants to close down major parts of the business... yeah it can be pretty difficult to counter that."
Labour, National react
Speaking to Breakfast this morning, Finance Minister Nicola Willis expressed sympathy for the workers, and said it would be “up to Watties to engage with their staff, to go through this consultation effectively".
“They haven’t made final decisions, and they’ve committed that they really want to look after their people and that’s important."
She said the Government was “taking steps” to help keep costs low for these industries.
“From the Government’s perspective, we have seen that confidence across the general manufacturing industry has risen considerably in recent times, and we are working very hard to keep those costs low, to make sure they’ve got freight routes, and make sure our famrers aren’t facing so much red tape.
“Of course, we never like to see this kind of thing happen,” she added.
Labour’s Kieran McAnulty said it was an “iconic New Zealand brand”, saying it was a “massive shock”.
He said he particularly felt for those who had been working there for decades of their lives.
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