Fonterra may shed hundreds of jobs

Up to 300 dairy workers face losing their jobs under plans by one of the country's largest employers to shut down three of its manufacturing plants.

Dairy giant Fonterra yesterday told employees at its cheese processing factories that it wanted to "consolidate" that arm of its business.

It has proposed closing factories in Auckland, Dunedin and Taranaki, and focusing work at a second Taranaki plant.

But another option could see the work go to Australia, though the company stressed last night that was not its preferred option.

The Dairy Workers Union described the planned closures as a "bitter blow".

However, the union said jobs should not be exported to Australia and it would scrutinise the proposals in that context.

Fonterra, which has more than 10,000 New Zealand employees, outlined its proposal yesterday.

Company spokesman John Redwood told the Herald that it was part of ongoing plans to increase and improve manufacturing.

Cheese is processed at Panmure in Auckland, MacAndrew Rd in Dunedin, and Bridge and Collingwood streets in Eltham.

About 450 jobs are involved: 130 in Dunedin, up to 100 in Auckland and about 250 in Taranaki.

The sites are secondary processors, where cheese is cut, wrapped or grated, but none is made.

Mr Redwood said the preferred option was to keep one Taranaki site at Eltham because it had the "greatest flexibility for future expansion".

But it was one of several options for change and a final decision would only be made after consultation with staff and the union, Mr Redwood said.

A final plan is due to be presented in April and the Herald understands Fonterra wants any closures to take effect within a year.

The company was formed in 1991, but is one of the top-10 dairy companies in the world with an annual turnover of about $12 billion.

James Ritchie, national secretary of the Dairy Workers Union, said the union would examine the preferred option against the impact on jobs and communities which had contributed to the company's global success.

"This is a bitter blow to hundreds of workers and their families," he said. "It is also a serious setback to communities in Auckland, Taranaki and Dunedin."

The union would investigate any options to prevent job losses and/or closures.

"These will be vigorously advocated in the consultation process," Mr Ritchie said.

The union also said Fonterra acknowledged an obligation to support New Zealand farmers and that obligation should be extended to all its workers.

Mr Redwood said the company "absolutely" recognised that and enjoyed a good relationship with the union. "We've got a good reputation and one that we're proud of. The first thing we did was tell staff and the very next thing will be consulting with them and their representatives."