Nestle staff 'in shock' over proposed restructure

Monday, 29 March 2021

Workers at a Nestle factory in Auckland are in shock after the company announced restructuring plans which could cut up to 45 jobs just before Christmas, their union says.

The proposal was announced on Wednesday and would see production of Nestle’s Allen’s chew lollies shift from the Wiri site to a larger factory in regional Victoria.

According to union E tū, the move could see almost 40 per cent of the union’s members at the Auckland plant lose their jobs.

If confirmed, the redundancies would go ahead in December.

A planned restructure of its South Auckland factory could leave up to 45 Nestle staff out of work.

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E tū’s national executive northern region representative, Gadiel Asiata, said the news was a huge shock and would likely have a ripple effect on the community.

“Nestle is one of those companies that has supported South Auckland for a long time and it has been the main source of income for a lot of people in that community.

“It is really sad that it has come to this – we are potentially losing something that generates jobs, along with workers who have been at the company for many years.”

In a statement, Nestle said that while confectionery making would cease at the Wiri site under the proposal, the factory’s larger manufacturing division would not be affected.

The factory would continue as the regional hub for Maggi, manufacturing culinary products under the Maggie and Nestlé Docello brands.

Nestle Confectionery general manager Chris O’Donnell said it was regrettable that the proposal would mean job losses at Wiri.

“This does not reflect on the personal efforts of our staff. It has been a commercial decision made after careful consideration of the benefits of simplifying and consolidating manufacture of our Australian lollies,” he said in a statement.

E tū team leader Jen Natoli said the blow was reminiscent of the closure of Dunedin’s Cadbury factory in 2018.

Many workers had invested many years of their lives to make the company successful, she said.

“The size of the confectionery manufacturing plant and the number of jobs it provides to South Auckland workers is significant.

“When large companies, such as Nestle, come into the country to do business and then leave when they find a better deal elsewhere, it can devastate local communities – especially now when we need to invest in recovery and rebuilding.”

If the proposal went ahead, Nestle should do the right thing to ensure none of its workers were without jobs come Christmas, Natoli said.

“This means redeployment, getting members' skills credentialled and qualified, actively working with E tū to find alternative employment, and making sure those members who find new jobs are able to exit when they need to with their full redundancy entitlements.”

Natoli said it was obvious in the wake of Covid-19 that “decent work” not only meant decent pay and a safe work environment but also stability and security.

“Decisions need to be made with workers at the forefront and we will be fighting to ensure Nestle’s workers get a fair deal.”