Staff movements on cards at Fonterra

Staff consultations about possible job cuts and operational changes in several of business units are under way at dairy giant Fonterra. But the co-operative yesterday would not give details about what is proposed.

"Out of respect for those people who might be affected by the proposals, and in light of the fact that we have an open mind to the consultation process and feedback we receive ... no further detail will be provided during the consultation period," it said.

A spokesman said Fonterra did not want to appear to prejudge what would happen by releasing details as it would take months for decisions on changes or redundancies to be made.

However, sources have previously told the Business Herald that Fonterra was gearing up for a fresh round of redundancies at the executive level.

It was suggested up to 30 per cent of management staff could be culled as part of a wider cost-cutting exercise.

Fonterra confirmed in February a new cost-cutting review was under way at its head office.

Then, chief financial officer Guy Cowan could not rule out the job cuts.

"This involves all business units looking at everything they do, how they do it, why it is part of the business and how we can become more efficient," he said.

Fonterra has already announced that it was looking at cutting some 300 jobs at cheese factories in Auckland (Panmure), Taranaki (two in Eltham) and Dunedin.

The spokesman said Fonterra's board was due to meet next week to consider a proposal to consolidate the cheese operations at one of the Eltham plants.