40 jobs to go with closure of bakery

Goodman Fielder has confirmed 40 jobs will go when it closes its Rotorua Quality Bakers plant in Tallyho St, but how and when that will happen is yet to be decided.

A company spokesman said consultation was now under way with staff at the Rotorua bakery to determine exactly what the process would be to close the plant as part of cost-saving initiatives worth A$100 million ($132 million).

"We're undertaking consultations with employees about the details of the closure. We have requested that they feedback to us over the next few weeks."

Goodman Fielder managing director Chris Delaney said the group's strategic review identified the opportunity to consolidate the group's baking manufacturing base and eliminate unused capacity.

The company operates another five bakeries in the North Island, but Rotorua was chosen for closure due to factors including age, maintenance requirements, capital requirements, distribution costs and available capacity.

Production from the Tallyho St site will be transferred to three plants in Auckland and Huntly to make use of their spare capacity.

Rotorua list MP Steve Chadwick described the announcement as "devastating".

"This is not a tumbling of jobs, by any means, but any loss of jobs is a tragedy in this environment."

She said before Christmas was a bad time for employees and their families to get this type of news and she hoped the plant would stay open until the New Year to help them through that.

Rotorua MP Todd McClay expressed his hope the company and Ministry of Social Development would ensure everything that could be done for the employees would be done and they could take up any opportunities available for upskilling.

"It's very disappointing, but Rotorua is not unique. There have been a number of decisions in the last couple of years by companies to consolidate what they do."

Mr McClay said the Quality Bakers' situation demonstrated the pressure on businesses in the global economic environment and illustrated the need to promote Rotorua as a great place for people to bring their firms and their jobs.

Two plants in Australia will also close as a result of Goodman Fielder's strategic review.