Hundreds of workers at a Timaru meat processing plant will soon lose their jobs after its owners today confirmed its closure.
In a statement today Alliance Group said it would close after it stopped processing venison on the day shift at the end of December. The decision follows a two-week consultation period with staff and unions.
The plant had already stopped sheep meat, calves and night shift venison seasonal processing in late September.
Alliance said the “vast majority” of its 600 employees at Smithfield would be made redundant.
There would be an opportunity for some staff to redeploy at Alliance’s other plants “wherever possible”.
“Staff who are made redundant will receive payments according to their employment agreements.”
Alliance chief executive Willie Wiese said closing the plant was an “extremely difficult” decision.
“I want to acknowledge the feedback from our people over the consultation period. We have made the decision to close the plant with a heavy heart, knowing the significant effect this will have on our people and the community.
“Despite exploring all possible alternatives, we were left with no viable option. While we know the outcome is not what anyone wanted, we are committed to working through the closure process as respectfully as possible.”
He said the company needed to “face the reality” of declining sheep processing numbers because 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.
“This closure will also mean we will have the right scale and a lower cost structure to meet the needs of our farmers and customers.”
Alliance has owned the plant since 1989, which has operated for 139 years.
Local task force put in to help affected employees
Following the announcement, the Timaru District Council said a local task force was being put in place to help those affected.
The group will coordinate support services for those being made redundant and identify job opportunities with local employers.
In the coming weeks, a number of local events will be held to support Smithfield employees.
These include a series of drop-in sessions with the Ministry of Social Development, a jobs fair, and CV workshops.
Timaru District Mayor Nigel Bowen called the closure a “significant blow” to the hundreds of families affected and the local community.
“It’s really important that the community now wraps itself around the people affected and ensures we help them every way we can,” he said.
“It will be a really challenging time for people, and it’s important they have trusted people to walk alongside them and connect them to, advocate for and help them navigate through their options going ahead.”
He said the district’s economic development body, Venture Timaru, would work closely with the South Canterbury Chamber of Commerce to identify local businesses needing staff.
“Our Community Development team has also met with all the non-governmental support agencies in town to ensure they are aware of the issue and can be coordinated in their response.
Rangitata MP James Meager said it was “great” to see agencies step up to support affected workers.
“We’ve got a strong community here, and one of those major strengths is that we have people who want to pitch in and help with those facing a tough time,” he said.
“From our perspective, I’m ensuring that Government departments in South Canterbury such as MSD are providing resource to help those wanting one on one support and advice as soon as possible.
“Everyone who works at Smithfield is a major part of our community and we value them hugely. We want to make sure that we can offer them every opportunity to stay here and ensure they and their families continue to contribute to our community.”