Sistema job cuts proposed, more than 100 Auckland factory roles could go

Sistema’s Auckland plant is proposing to cut a quarter of its workforce due to what it says are declining sales and increasing manufacturing costs.

The proposal would lead to its Māngere plant reducing worker numbers from 407 to 305.

The business confirmed the proposal and said it was consulting with workers at the factory and their representatives regarding potential changes to staffing levels.

“Like many New Zealand businesses, Sistema has had to navigate a challenging macro environment and unstable market conditions,” the company said.

“We have an amazing workforce at Sistema, but we need to make operational changes to ensure the company is in the best position to meet the needs of the current market now and into the future.”

Sistema said it was consulting with staff on a proposal for a new staffing model within its production, materials, quality and warehousing functions.

Sistema founder Brendan Lindsay sold the plastics business he founded in 1982 for $660 million in 2016. Photo / Jason Oxenham

E tū industry convenor and Sistema worker Ma Roberts said workers had known about the possibility for a while, but it still came as a surprise.

“Work has been slowing down since last year, and we know the production costs have risen for the company,” Roberts said.

“But people rely on this work to get by, and for many workers, this job is the best opportunity they have.”

According to Roberts, Sistema had offered voluntary redundancies but she hoped for a fair and transparent process to figure out who gets to keep their jobs.

She said English was a second language for many workers at the Māngere plant, with several older workers as well, who could have trouble finding new employment.

E tū director Georgie Dansey said she understood the company’s position, but supporting workers who would lose their jobs should be a priority for Sistema.

“There are promising early signs that E tū can work with the company to support the workers,” Dansey said.

“For example, they are offering a paid four-week notice period without a requirement to work, and an extra four weeks’ pay after that. This will certainly help people who have lost their jobs to get back on their feet.”

Sistema sells a range of plastic storage containers in more than 90 countries, with offices in Australia, the United Kingdom, France, Scandinavia, and the United States, and has an extensive distribution network.

The business was founded by Brendan Lindsay in 1982, but was sold to New Jersey-based Newell Brands in 2016 for $660 million.

In September, Lindsay opened up on his back story and the importance of being ‘Made in New Zealand’.

He revealed that Newell initially tried to buy the firm in 2014, but would not agree to the Lindsays’ insistence that manufacturing of Sistema products would stay in New Zealand for another 20 years.

Two years later, the US giant was willing to accept those terms.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.