New Zealand food manufacturing company Heinz Wattie’s Limited has proposed major changes to its operations that could see it stop producing frozen vegetables, Gregg’s coffee and several dip products, a move expected to affect about 350 jobs.
According to a report by 1News, the company announced the proposal on Wednesday as part of what it described as a shift toward its long-term business strategy.
"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, 1News has quoted.
Under the proposal, the company would discontinue the sale and production of frozen vegetables, Gregg’s coffee and dips sold mainly under the Mediterranean, Just Hummus and Good Taste Company brands.
"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," 1News has quoted.
If the plan goes ahead, three manufacturing facilities in Auckland, Christchurch and Dunedin would close. Packing operations would also stop on the frozen lines at the King St site in 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," as quoted by 1News.
Managing director Andrew Donegan said the company understood the potential impact on workers and communities.
"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," he said, 1News has quoted.
Donegan added that the company had considered other options before putting forward the proposal.
"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," as quoted by 1News.
The company said operating conditions in New Zealand had become increasingly challenging due to high global inflation and broader industry pressures, which have affected its commercial performance. It said it would continue working with employees, union representatives, growers, suppliers and other stakeholders during the consultation process.
Union warns of severe impact
The trade union E tū said the proposed closures would have serious consequences for workers and their families.
According to a report by 1News, a union delegate, Kathy Perrin, who has worked at the company for 46 years, said she was deeply concerned for colleagues who could lose their jobs after decades of service.
"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 also said seasonal workers could face redundancy 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," 1News has quoted.
E tū director Finn O'Dwyer-Cunliffe said many employees had spent most of their working lives at the company.
"The impact on them and their families will be severe."
He warned the closures could also affect wider communities and supply chains, noting that about 220 growers in the Canterbury region supply the Christchurch facility.
O'Dwyer-Cunliffe said the move reflected a broader trend of manufacturing closures across Aotearoa New Zealand.
"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," 1News has quoted.
He said the country should be strengthening local food production rather than reducing it.
"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," 1News has quoted.
O'Dwyer-Cunliffe added that the union would push for fair outcomes for workers affected by the proposal.
"Heinz Wattie 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," as quoted by 1News.
Government reaction was sought by the news outlet 1News. A spokesperson for the Finance Minister referred to a statement issued last month welcoming data from Stats NZ showing that 15,000 additional people gained jobs in the final three months of last year.
ISSUE
Leave a Comment