100 jobs hit as secret study axes flour mills

By JAMES GARDINER

Goodman Fielder is to close its Champion flour mills in Auckland and Palmerston North and its Flemings oat mill in Gore.

More than 100 staff face job losses or relocation.

From November the company will do all its North Island milling at its plant in Mt Maunganui. South Island milling will continue at Christchurch.

The closures follow Goodman Fielder's review of its Australasian milling operations, a review which is going on across the Tasman.

The company tried to keep the review, called Operation Jupiter, secret. It denied its existence and acknowledged it only after the Herald published details on March 14.

At that time, there were concerns the company might close all four New Zealand flour mills and import flour from its Australian mills. This would have been a blow to wheat growers in Canterbury, Manawatu and Wairarapa.

Goodman Fielder group managing director Doug McKay said yesterday supply arrangements with New Zealand wheat growers would not change.

"The early notice gives oat growers time to adjust before next season's crop is planted," Mr McKay said.

Equipment would be moved from the Auckland mill to the smaller but more modern Mt Maunganui mill, which would be upgraded and expanded.

The company has 27 staff at Mt Maunganui, 32 in Palmerston North, 64 in Christchurch and 36 in Gore. It plans to increase the Mt Maunganui workforce by 30 people, mostly from Auckland but also from Palmerston North.

It will also try to relocate some Gore staff in other plants.

Gore District Mayor Mary Ogg said locals were shocked and devastated by the news.

Flemings Mill had been an integral part of the district for more than a century.

"Generations have worked at the mill and some loyal staff have been there more than 30 years," she said.

Service and Food Workers Union national secretary Darien Fenton said it was disappointing to see jobs lost.

The union, which represents many of the 57 staff in the Auckland mill in Fort St, met workers yesterday after being notified by the company before the public announcement.

Mr McKay said affected staff and their families would get substantial support, and as many as possible would be transferred to other jobs.

More efficient milling operations would give greater competitiveness against imported flour, possible price reductions and "sustainable long-term operations."