McCain job cuts loom

Upgrades in technology and changes in contracts may see the axe fall on a number of workers at McCain Foods Ltd in Washdyke.

While management at the plant, or its Australian-based head office, were not able to be contacted yesterday, The Timaru Herald has learnt the Washdyke factory will shut for two weeks, from July 11.

In that time, new technology packing robots will be installed to do the jobs of up to 16 staff in the packing area.

The Herald understands the jobs of people who remove potatoes from the stores may also go, with about seven positions thought to be affected.

And after years of transporting produce from farms to McCain Foods stores, it is understood the contract presently held by Hilton Haulage will go to another firm. That could see about seven workers affected at the transport company.

The proposed cuts come seven months since 30 jobs were lost when McCain Foods closed its Timaru vegetable operation due to the high New Zealand dollar hurting exports.

The operation was closed in early November and was blamed on flat domestic sales, an ageing plant and declining exports to Japan, China and South-East Asia.

At that time, McCain Australia-New Zealand managing director Steve Yung said significant investments were required to upgrade the plant and continue operations.

Mr Yung yesterday said that where possible employees will be offered jobs at the french-fry facility in Timaru. Last year, the company invested more than $10 million in upgrading facilities.

- © Fairfax NZ News