This dispute between Affco and employees is about the need to negotiate in 'good faith' under the provisions of the Employment Relations Act 2000. THE New Zealand meat industry has had the benefit of high commodity prices, free of industrial unrest for 21 years, huge "clawbacks" from employees with the introduction of the Employment Contracts Act in 1991, rising cattle numbers, a reduction in lamb numbers (lambs are now much heavier) and wages falling well below the consumer price index in 21 years.
Statistics NZ has identified that the volume of meat exported per person employed has risen from 23 tonnes in 1980 to 37.8 tonnes today; a productivity gain of 64 per cent. Meat workers are doing their share for NZ Incorporated.
In October 2001, Talley's started buying shares in Affco, in June 2006 Talley's acquired 51 per cent and, by October 2010, Talley's had acquired Affco outright.
Simultaneously, in the South Island, Talley's Affco set up a new meat company called South Pacific Meats [SPM], building plants at Awarua and Malvern (still under construction). In August 2006, Affco Rangiuru dismissed two plant union officials, who had asked on several occasions for a meeting with their delegates - which Affco declined, contrary to the agreement. One was reinstated, the other progressed through the employment authority, finally being reinstated with lost wages awarded, $2500 compensation and costs.