Sealord's processing plant. (Photo Credit: Sealord)
A higher number of jobs than previously thought are under threat from Sealord's decision to downsize its Nelson processing plant and supporting offices but the firm claims the process workers will likely all get new jobs quickly.
The number of jobs affected by this proposed restructure has risen to 150, but the company says this makes up just a small part of its workforce, The Nelson Mail informed.
Company spokeswoman Alison Sykora stressed the 97 job cuts originally announced affected permanent staff, while the 53 contractors that will be affected had been employed on a casual basis, 3News informed.
Furthermore, Sealord fishing general manager Doug Paulin remarked that Advanced Personnel Services (APS) could also offer work to the wetfish factory staff directly employed by Sealord.
However, Service and Food Workers assistant national secretary Neville Donaldson pointed out that “the group had failed to mention about 50 workers supplied to Sealord by APS, some of whom had worked there for years.”
Besides, the union leader said he would be seeking answers to a range of questions that Sealord hadn't addressed.
However, the firm’s sources explained that Sealord Group is in stable financial shape.
“We continue to invest in processing in Nelson, and we are optimistic about the growth of our fresh fish business. However, we do have to continue to improve and adapt to manage the ongoing challenges of rising costs, globally flat white fish pricing and a high exchange rate,” expressed the firm in its report.
On the other hand, Donaldson voiced concerns about Sealord's processing in China, and uncertainty as to whether “it meant more processing aboard foreign boats, albeit New Zealand-flagged".
Referring to this issue, Paulin explained that none of what is produced in China - mainly frozen hoki portions for Europe and North America - could be economically processed in Nelson.
And the manager added that Sealord was an investor in the Westfleet factory but had no management role, and all its 50 jobs had been filled from that area before the Sealord announcement was made.
According to the Group, the wetfish factory -- one of three factories within the Sealord Nelson land based operations -- is not economically viable, and improvements must be made to ensure Sealord’s ability to grow and invest in its operations in the future.
“We have worked to propose a solution that, while very difficult for those impacted, means that we could continue to run a smaller Wetfish operation focused on higher value products. Other land based factories and our sea-going factories and fishing crews are not impacted,” the firm highlighted in its report.
Sealord is New Zealand's second-largest fishing company and is jointly owned by Maori tribal interests through Aotearoa Fisheries and Japan's Nippon Suisan Kaisha.
The firm ensures it has managed to overcome the losses experienced in 2013 due to the exit from Argentina and that this year, a dividend will be paid to its shareholders.
A NZD 44.3 million (USD 34.4 million) loss has been reported by Sealord in the 12 months to 30 September, 2013, as revenue fell 6.1 per cent in that year.