Freezing plant workers agree to pay cut

Workers at a freezing works have agreed to a reduced pay rate in the hope of ending the long-running contract dispute with the company.

New Zealand Meat Workers Union Canterbury president Bill Watt said an offer from boning room workers at Alliance's plant in Smithfield was put to the company yesterday.

Management had now gone away to consider it, The Timaru Herald reported.

"They were fairly neutral. But we believe we have made substantial concessions," Mr Watt said.

He said the workers and the union were waiting for the company to consider the proposal and get back to them.

Alliance production manager John Brader who attended the meeting was unable to be contacted, the newspaper said.

Smithfield began its killing season on January 5 despite a standoff over contract rates that threaten the plant's closure.

Alliance wants to undertake an $11 million upgrade at Smithfield, a suburb of Timaru, but will not go ahead unless contract changes are agreed.

Fears remain that Smithfield could be closed with the loss of more than 500 jobs if Alliance management do not accept the latest offer.

- NZPA