Union cites summit in bid to save Sealord jobs

A union is appealing to the Government, fresh from the Job Summit, to intervene as a large employer plans to slash about 180 jobs, while hundreds more could be at risk.

Sealord, a global seafood enterprise with its New Zealand base in Nelson, yesterday announced restructuring plans aimed at improving its financial performance amid the recession and positioning the company for "further international growth".

It comes after the company said last year that it was shutting down its half-shell mussel production in Nelson, leading to the loss of 323 positions.

Chief executive Graham Stuart said yesterday a proposed switch to a dayshift-only operation at a Nelson seafood processing plant would potentially reduce staff numbers by about 180 jobs.

Commissioning a new factory freezer trawler at sea would create 50 jobs, partially offsetting the loss of employment on land, he said.

But the Service and Food Workers Union said Sealord was intending to lay off about 160 staff immediately and indicated that it might close the processing plant unless staff agreed to "what is effectively a $70-a-week cut in wages across the board".

"When most business are saying they are prepared to make less profits in order to secure employment, Sealord have demanded that workers increase the company profits by $1.8 million through wage and condition cuts," said Neville Donaldson, assistant national secretary of the union.

"If staff don't agree to the proposed cut in wages and conditions within the three-week consultation process, Sealord management have advised us that the board may take an option to close the processing facility in Nelson which employs over 500 workers."

Mr Donaldson said while the union would do what it could, the Government needed to intervene.

"Given the commitment from the Job Summit, we are expecting immediate support from the Government to save these jobs."

Mr Stuart said a review of the organisation and all jobs could lead to further reductions in salaried positions.

A number of Sealord's mussel farms would be offered for sale, and the company would buy out its partner in the Argentinian fishing company Yuken.