Hundreds of job losses confirmed in Timaru meatworks closure
Friday, 18 October 2024
Hundreds of job losses have been confirmed with the closure of Alliance Group’s Smithfield plant in Timaru.
The proposal to close the plant was announced at a meeting at the Caroline Bay Hall on September 27. With the plan going ahead after two weeks of consultations, more than 600 jobs will now be lost.
Workers leaving the meeting at Southern Trust Events Centre said they were not surprised by the closure, but confirmation was still difficult to hear.
There was a strong presence of security at the venue with guards standing outside the front entrance, while police were also on hand.
Willie Wiese, chief executive of Alliance, says closing the plant was an extremely difficult decision for the company.
“Our thoughts are with our people and their families affected by the closure of this plant. Smithfield has been a familiar presence in the region for almost 140 years and we know this decision will impact the Timaru community and South Canterbury.
“Unfortunately, we must face the reality of declining sheep processing numbers as a result of land-use change. This has resulted in surplus capacity in our plant network. We cannot maintain excess processing capacity when livestock numbers don't support it.
“According to our forecasts, we can process our farmers’ sheep, deer, and cattle at our four other South Island plants during peak season, without the need for a fifth plant.”
Staff will be offered the opportunity to apply for re-deployment at Alliance’s other processing plants, however the decision means the vast majority of Smithfield employees will be made redundant.
Alliance Group noted that venison day shift processing at Smithfield will continue until no later than the end of December and the plant will then close.
Timaru District Mayor Nigel Bowen said that the closure was a significant blow not only to the hundreds of families directly affected, but the whole community.
“It’s really important that the community now wraps itself round the people affected and ensures we help them every way we can,” he said.
Earlier, one worker, Corey Arceo, said he was hoping workers would be offered a payout at the least.
Otherwise we’re screwed, mate, we’ve got families.”
Consultation on the proposal ended last week and all staff received a message on Wednesday asking them to a meeting for an “important announcement’’ about the future of the Smithfield plant.
Up to $50 million a year in wages alone would be lost to Timaru’s economy with the proposal to close the plant.
The Ministry of Social Development, in conjunction with the South Canterbury Chamber of Commerce, Venture Timaru and a number of other support agencies, planned to hold a job fair on November 5.
Following the announcement, a task force of agencies was formed to coordinate support and identify opportunities for alternative employment in the region and those neighbouring it.
The task force, set up by MPs James Meager and Miles Anderson, included Timaru District mayor Nigel Bowen, Waimate District mayor Craig Rowley and Waitaki District mayor Gary Kircher, along with representatives from the Ministry of Social Development, the South Canterbury Chamber of Commerce, Venture Timaru, Multicultural Aoraki, Pasifika O Aoraki Services and the Timaru District Council.
The Smithfield announcement followed news that Antarctica NZ had dumped plans to rebuild its Scott Base facility in Timaru, a project community leaders had pinned high hopes to.
When announced, that project was expected to generate up to 700 jobs.