Fonterra to cut 40 South Island jobs

Up to 40 jobs could be lost at Fonterra's Clandeboye factory in South Canterbury this winter as the dairy co-operative consolidates brine salt cheese manufacture to Lichfield in south Waikato.

Hub operations manager Alan Bennett said the move was the result of a review of manufacturing capacity and made economic sense as the Lichfield plant had more than enough capacity to meet demand. The review also recommended changes to combine the manufacture of dry salt cheeses and parmesan at Clandeboye.

Bennett said, as a result, it was expected the parmesan-grating plant at Clandeboye would also close but a final decision on this was yet be made.

Staff at the plant were informed of the proposals last week.

A worker said staff were informed that the rationalisation would affect 30 to 40 staff and that there were only about 10 alternative jobs on site.

Fonterra spokesman John Redwood confirmed the numbers involved. "Certainly, the number of positions affected is up to 40. But that does not necessarily mean redundancies of the same amount," he said.

"A lot will depend on what comes out of the consultation process [with staff] over the next few weeks."

Redwood pointed out that in the past two seasons about 100 jobs had been added at the site, taking manufacturing staff to 363 and the total work force to more than 800.

- NZPA