Decision imminent: Consultation ends at Alliance Smithfield plant
Saturday, 12 October 2024
Consultation with staff over the future of Timaru’s Alliance Smithfield plant has closed, with a decision expected to be made next week.
A proposal to close the plant was announced at an all-staff meeting at the Caroline Bay Hall on September 27, and if that plan goes ahead it will affect more than 600 staff.
Staff were given until 5pm on Friday to provide feedback to the proposal.
Alliance Group general manager processing and safety Wayne Shaw said “we will then consider all feedback from our people next week’’.
“We remain on track to make a decision by October 18,” he said.
NZ Meat Workers Union southern region senior organiser Bill Watt said he had read many of the submissions from union members at the plant.
“I’ve read some really good submissions,’’ he said.
The union had also attended several meetings around the proposal including a multi-agency meeting held in Timaru last week to discuss a coordinated approach to support workers to find new employment and to understand the capacity of industry to take on workers.
Watt said jobs were key, and some staff from Alliance Smithfield had already found alternative employment.
The ramifications of the proposed closure would be huge.
Up to $50 million a year in wages alone would be lost to the district’s economy if the closure went ahead, and meat workers had already been targeted by offshore companies, with advertisements for hundreds of jobs appearing, some offering relocation packages.
The community had rallied behind those impacted, and Presbyterian Support South Canterbury Family Works general manager Deidre Dahlberg anticipated there may be an increased demand on services, with many doing it tough in the community.
The agency’s food bank gave out almost 2000 food parcels to these in need in the community last year, with that number expected to be “far larger’’ within this financial year.
During South Canterbury Anniversary Week, last month, it organised a food drive which was supported by workplaces and schools throughout the region.
Dahlberg praised those who had organised collections and other community support initiatives for those impacted by the possible closure of Smithfield.
“These are good examples of community responsiveness without depending on an agency,’’ she said.
“This frees up agencies to concentrate on other support systems that may be needed. It is fantastic to see.’’
Family Works also provided counselling and Dahlberg said there were spaces available for those who needed support.
“Just ring up Family Works who will provide you with a referral to our intake service,’’ she said.
“From there counselling or other services can be arranged. Self-referrals are fine, or a neighbour or friend may want to refer someone.’’
Alliance Group had owned the Smithfield site since 1989.
Impacted staff would be offered the opportunity to apply for redeployment at other plants, but a significant number of redundancies would be expected if the proposal went ahead, the company said at the time of making the announcement on September 27.
The 139-year-old Smithfield plant was the company’s oldest site and required significant investment in repairs and maintenance.
In August, Alliance confirmed the closure of its Timaru and Ōamaru butcher shops, with 12 employees affected.
At the time, Alliance’s general manager of New Zealand sales John Skurr said, the decision would enable the company to better concentrate on its primary business activities “which will ultimately strengthen our company for both our people and our farmers”.
Last December, Alliance announced a $97.9m annual loss that coincided with the company’s 75th anniversary.
The loss followed a record result in the previous year, then group chairperson Murray Taggart said at the time.
He said a collapse in the global red meat markets, reduced revenue of about $2 billion, and the $97.9m loss had brought urgent changes for the company.