Yarrows may slash 30 jobs

BY GRETA CLEARY AND KELLY LONEY

Manaia was dealt a body blow yesterday with news that more than 30 jobs could be cut at Yarrows bakery.

Workers were delivered the bombshell at a meeting called by management to announce a production staff review.

Documents given to employees and viewed by the Taranaki Daily News suggested 32 roles would be made redundant, different shift schedules could be introduced and staff transfers to the Australian plant were possible.

There are about 250 staff at the South Taranaki operation, making the bakery the major employer in the town with a population of 900.

Yarrows is New Zealand's largest family-owned bakery, exporting product all over the world, including to Australia, Singapore and the United States.

This had included a million rolls a month for Subway chain stores in New Zealand, Australia, Singapore, Japan and Taiwan, and thousands of croissants for export to Canada, Alaska, Hawaii and the Pacific islands – including Tahiti.

The proposal also said management had "tried to hold off a review for as long as possible" but based on forecasted sales and production requirements there are more roles than required.

"We must change what we are doing and/or restructure if we are going to survive," the document said.

"In this review proposal up to 32 production roles would be disestablished leading to significant redundancies."

A staff member, who asked not to be named in fear he would lose his job if he spoke out, said the review was not a surprise as there had been a few clues such as university students not being hired over the holidays.

At the meeting, the general feeling was that it was a done deal and the last hired would be the first to go but details of who would be affected, how and when weren't discussed.

"There were no straight answers given.

"There were a whole lot of disgusted people. A lot of people wished they had been told a while ago so they had time to plan," he said.

While rumours have been rife for months about potential redundancies, Manaia residents who spoke to the Taranaki Daily News shortly after the meeting were unaware of the announcement.

Yarrows CEO Colin Pettigrew said the company would be "investigating every aspect of the business, focusing on surplus capacity".

While the New Zealand market, of mostly fresh bread products, was up 60 per cent, frozen dough exports were struggling.

"The Manaia operation has more capacity than exporters require," he said.

"We're going to be working with unions and staff together to see how we can get the best out of the manufacturing facility."

He said the current strength of the New Zealand dollar, coupled with the difficult global business environment, has had a severe impact on the company's ability to be price-competitive and secure new business.

Also since operations in the Australian plant started a year ago, production has gradually moved away from Manaia. Contracts with Australian customers, negotiated over a four-year period, have stipulated product come from Australian facilities for cost-efficiency.

Mr Pettigrew said the deadline for feedback and analysis was November 30.

The Engineering, Printing and Manufacturing Union spokesman Rob Egan said a union organiser would meet members and management today to ensure the consultation process was properly followed.

"There was a reasonably good redundancy payment clause in place in the agreement that we negotiated but we're hoping it doesn't come to redundancies."

He said the union had worked with other companies in the past to find money-saving alternatives to prevent job losses.

The union represents 90 workers at Manaia.

- © Fairfax NZ News