Sealord confirms loss of 130 jobs

Fishing company Sealord today confirmed it will transfer fish processing to a freezer-trawler and move to a single shift and the loss of 130 jobs at its Nelson fish plant.

However, the move has not guaranteed the long-term security of the Port Nelson factory and 400 jobs there.

Efforts to make shore-based processing a viable option against processing at sea and making it worthwhile to invest in the factory were sadly unsuccessful, said chief executive Graham Stuart.

About 7000 tonnes of fish processing will move to the cheaper option of the Independent 1 freezer-trawler. It will replace the fresh fish trawler Taimania, creating new positions at sea, Mr Stuart said.

During the period of consultation plant staff numbers have reduced through natural attrition. Initially Sealord said 180 jobs would go but now over the next six months about 130 land-based positions will be cut.

The decision follows consultations with staff, the Service and Food Workers Union and the Maritime Guild which began with a briefing to unions on February 18.

Mr Stuart said more than 400 staff would continue to be employed at the Vickerman St site which has a fish plant, a crumbed product plant, a coolstore and wharf facilities.

The fish plant was at risk because processing fish on land costs $9.9 million more a year than processing at sea.

"The plant needs substantial improvement before it has a secure future. A $9.9 million profit differential between processing at sea and processing on land was much too big for us to ignore.

"Moving 7000 tonne of processing to Independent 1 reduces the differential, but it leaves a shortfall of $3.5 million.

"We need to at least close this gap to secure the future of the site."

The plant at Nelson's port had employed 650 at the peak of the hoki season.

The company was created out of the historic Sealord fishing deal and is owned jointly by Nippon Suisan Kaisha of Japan and Maori tribes via Aotearoa Fisheries Ltd.

- NZPA