Six jobs axed at Wattie's plant

Wattie's has shed six jobs in its latest round of redundancies. Photo / Warren Buckland

Six Hastings workers at Wattie's are being made redundant in the company's latest wave of job losses that includes a total of 45 across New Zealand and Australia.

Yet despite the news, the layoffs in Hawke's Bay are being labelled a "win-win" by Bay Union Group organiser John Young. "They have identified some positions that are surplus and have offered voluntary redundancies - there are enough people who want to put their hand up and get the payout, so it is not really a big issue," he said.

"This new owner, if there are any efficiencies to be gained and surplus staff they don't mind paying out and getting rid of them. We have a good redundancy deal and the older workers - 60 or 65 - are rapt to get a good payout before they retire. It is quite a good win-win for everyone."

In reaction to the news, Hastings Mayor Lawrence Yule said: "We don't like any job losses but it is just a small number." He said he understood the future of the plant was "very sound".

"This is just a further change to make it as efficient as possible."

There have been several waves of redundancies at its Hastings operation since Wattie's owner Heinz was bought by Warren Buffett's Berkshire Hathaway investment company and Brazilian private equity firm 3G Capital for $28billion in 2013.

Under 3G management dozens of management jobs were shed at its Hastings operation, which the company said was a routine process that had helped it to achieve number-one brand status in New Zealand supermarkets.

"By being efficient in all that we do, Heinz Wattie's can continue to perform in both the domestic and export markets," the then-managing director Michael Gibson told Hawke's Bay Today.

The company has declined to comment on the current redundancies, believed to be 45 across New Zealand and Australia.

Fortune magazine called 3G's management "cut-throat" due to swift layoffs and cost cutting for increased profit.

In March listed United Stated grocery company Kraft announced a proposed merger with Heinz, creating the fifth-largest food company in the world.