‘Just gutted’: Timaru braces for impact of Smithfield plant closure
Saturday, 19 October 2024
More than 600 workers at Alliance Group’s Smithfield plant in Timaru will be laid off by the end of the year, with the company saying there is no way forward for the 139-year-old meatworks operation.
The news was confirmed at an all-staff meeting at the Southern Trust Events Centre on Friday.
However, conspicuous by his absence was Alliance chief executive Willie Wiese who had also been absent at an earlier all-staff meeting on September 27, when a proposal to close the plant was revealed.
Wiese’s failure to front did not sit well with NZ Meat Workers Union southern region senior organiser Bill Watt.
“Personally I’m not sure where the chief executive is, but other times when there has been redundancies the chief executive delivers that message,’’ he said.
“I guess it’s disappointing.
“Alliance lost almost $100 million last year. That wasn’t the fault of the people of Smithfield.’’
He said the plant had potentially been the most productive plant in New Zealand.
“But no one from the board, and the chief executive didn’t appear, and that’s disappointing.’’
Instead, an email from Wiese was sent to all staff on Friday morning confirming the closure.
In it he told staff the decision to close the plant had been “incredibly difficult’’.
Following the meeting, Alliance Group general manager processing and safety Wayne Shaw confirmed Wiese was overseas.
“Mr Wiese has obviously been heavily involved with this process throughout,’’ Shaw said.
“This is part of obviously our processing network, and I’m the general manager of processing so it falls on me really to manage changes to our capacity.’’
He said the majority of Smithfield workers had already finished work and its venison processing operation would continue until the end of December.
Shaw said there were a number of support agencies in South Canterbury to help the workers, and each employee was given a pack containing information on this upon leaving the meeting.
There was a strong security presence at the venue with guards standing outside the entrance, while police were also on hand.
Workers react - ‘Just gutted’
Workers leaving the meeting said the news was hard to take, and they were unsure what their next move would be.
Corey Arceo said, “they shut us down’’ as he spoke to The Timaru Herald outside the meeting.
“I’m a little bit nervous, a little bit worried about what I’m going to do,’’ he said.
While he wished to remain in the region, with few family members around he no longer had a choice, he said.
As he had only been at the plant for one year he would not get a “decent payout’’.
Fellow worker William Milmine said the announcement was a “big shock’’.
“[I’m] just gutted.’’
He was unsure what he would do next, but thought the Alliance plant in Pukeri, Ōamaru, may be an option.
Melissa Biggs had worked at Smithfield for 16 years and hoped she would find another job.
“But with all these people out of work, and everything, it’s probably going to make it a bit hard for everyone,’’ she said.
Caleb Charles said it was “gutting’’ for everyone in the community.
“I know there’s a lot of people worried about what they’re going to do in the future,’’ he said.
“It’s nice to hear them [Alliance] offer employment in their other plants.’’
However, moving to other regions may be unrealistic for some people, he said.
“If we stick together then we can make the most of it.’’
Support for workers
With Friday’s “distressing’’ news, it was now time for the community to focus on support for workers and their families, South Canterbury Chamber of Commerce’s chief executive Wendy Smith said.
“This is a very difficult time, and the chamber is reaching out to the business communities across South Canterbury to see where there may be jobs available,’’ Smith said.
A job fair had been organised by agencies for November 5, and Smith said it was actively seeking businesses who could have roles for displaced workers.
While it was the chamber’s preference to keep workers and families in South Canterbury, Smith said it recognised some would leave the area, out of necessity.
“To this end we have been working with local, regional and national businesses and those from Australia too.”
Eville and Jones Food Safety Operations’ director Wayne Herrod was waiting outside the meeting, with the offer of jobs at the company’s Australian abattoirs.
He, and staff member Pat Bohan had travelled to Timaru specifically to speak to Smithfield employees.
“We’re probably a couple of hundred people short at any one time, and the people here fit us ideally,’’ he said.
“They’re skilled, they’ve got experience, they’ve shown a commitment to the meat industry and they’re the type of people we’d like to think would come over.’’
Herrod said the plant in Australia was similar to Smithfield, processing “mainly beef’’ and was unable to process as much as it could due to staff shortages.
Timaru District mayor Nigel Bowen said the closure was a significant blow to the entire community.
“It’s really important that the community now wraps itself round the people affected and ensures we help them every way we can,” he said.
A taskforce had been set up to help those affected, and would coordinate support services for those made redundant, and identify employment opportunities.
The council’s community development team had also been in contact with all non-governmental support agencies in town.
“We’ll also be helping by ensuring that there’s a single place people can go to access advice and support resources they need,” Bowen said.
Rangitata MP James Meager said it was great to see so many agencies stepping up.
“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.’’
He said everyone who worked at Smithfield was a major part of the community and “we value them hugely’’.
Rangitata-based Labour list MP Jo Luxton said the news was devastating for affected employees and the wider South Canterbury region.
“These workers contribute to the local economy and businesses, and many have family nearby. Now many of them will potentially have to leave our community in search of work,” Luxton said.
The New Zealand Council of Trade Unions’ president Richard Wagstaff called on the Government to show leadership.
“The loss of 600 jobs will be devastating for Timaru and the communities of South Canterbury, especially during a cost-of-living crisis and an economic downturn,” he said.
“It is unacceptable that there has been absolutely no help for the affected workers even though the Government has known since last month that this was likely to happen.’’
What happens to the land now?
Shaw said the land the plant sat on would likely be sold “for development’’ and confirmed “a number of parties” had already expressed interest.
“We will be working through that over the coming weeks and months,’’ he said.
“Obviously there will be a competitive process involved in that to ensure that we get maximum return for that facility.’’
A title search of the land which the Smithfield plant was situated on showed it was still owned by Alliance Group.
It owned two lots, 15 Bridge Rd which was a 7.92ha piece of land that sat alongside State Highway 1 opposite The Showgrounds development, and 52 Bridge Rd which is 24.2 ha and sat along the coast.
The council owned two pieces of land on either side of the road at 30 Pacific St, which measured 5.35ha and 1.375ha, and Freshpork New Zealand Limited owned the neighbouring 3.5ha site at 67 Pacific St.
As of Friday, the ownership of those properties had not changed.
Where to get help
Drop-in sessions with the Ministry of Social Development (MSD) will be held on October 30 from 10am-5.30pm; October 31 from 8.30am-5.30pm; and November 1 from 8.30am-3pm
A jobs fair featuring 40 South Canterbury employers will being held at Caroline Bay Hall on November 5 from 2pm-7pm
A series of drop-in CV workshops will be held between October 22 and November 8 at the Work and Income office at 14 Strathallan St, Timaru.
Support is also being provided by a range of organisations including Multicultural Aoraki, Family Works, Arowhenua Whānau Services, Citizens Advice Bureau, Pasifika O Aoraki Services, Tongan Society South Canterbury, the Samoan Society, Ara, Volunteering Mid and South Canterbury, and The Y.
Anyone affected by the closure can also contact the MSD on 0800 559 009, James Meager’s office on (03) 683-2009 or the council on (03) 687-7200.