Smithfield Timaru meatworks shutdown confirmed: Hundreds of jobs to go

Staff gathered in Timaru as Alliance Group confirmed the closure of its Smithfield meat processing plant. Photo / Ben Tomsett

Staff face an uncertain future as Alliance Group today confirmed the closure of its Smithfield meat processing plant in Timaru, in South Canterbury.

About 600 staff are employed during peak season at the 139-year-old Smithfield plant, which has been owned by Alliance since 1989.

The farmer owned co-operative said wherever possible, impacted staff will get the opportunity to apply for re-deployment at Alliance’s other processing plants, but the decision means the vast majority of Smithfield employees will be made redundant.

A meeting was held at Timaru’s Aorangi Stadium this morning, where staff were told of the shutdown.

Shanika Morris said the confirmed shutdown was a huge blow to her whole family.

“I only started in January ... but my husband has been there for 10 years.”

She told the Herald her family might have to relocate, in which case her children would have to start at a new school.

“Everyone gets their redundancy, which is a bonus for some.”

But she added: “It’s definitely caused a lot of stress and anxiety.”

Pat Bohan (left) and Wayne Herrod flew over to Australia to potentially recruit redundant Smithfield employees for Australian abattoirs. Photo / Ben Tomsett

Savelio Atuekaho said he’d been working at Smithfield for two years.

“I’m not too happy but I am happy to get redundancy ... I’m going to miss a lot of mates out there.”

Atuekaho said he wasn’t yet sure what the redundancy packages would be.

And after the mass layoffs he was also uncertain about his own future, and assessing his options.

“Right now it’s either to go back to uni, or just find another job.”

The Alliance Group said declining sheep processing numbers, due to land-use change, made the plant uneconomical. Photo / Tim Brown, RNZ

Pat Bohan and Wayne Herrod were there from Australian abattoirs to potentially recruit employees.

From Warwick in Queensland, they said they theoretically had the capacity to employee all 600 local workers.

They said there were “monumental” worker shortages at Australian abattoirs.

The decision on Smithfield announced today followed a two-week consultation period with Smithfield staff and unions.

Alliance operates six other plants at Lorneville, near Invercargill, Mataura, Southland, Pukeuri, Nelson, Levin and Dannevirke.

Workers after a surprise meeting at the Smithfield meatworks in Timaru last month, where they were told they could lose their jobs. Photo / Tim Brown, RNZ

Sheepmeat, calves and night shift venison seasonal processing at Smithfield ended last month.

Venison day shift processing at Smithfield will continue until no later than the end of December. Then the plant will close.

Chief executive Willie Wiese today said closing the plant was a difficult decision for the company.

“Our thoughts are with our people and their families affected by the closure of this plant,” he said.

“Smithfield has been a familiar presence in the region for almost 140 years and we know this decision will impact the Timaru community and South Canterbury.

“Unfortunately, we must face the reality of declining sheep processing numbers as a result of land-use change.

“This has resulted in surplus capacity in our plant network. We cannot maintain excess processing capacity when livestock numbers don’t support it.”

Wiese said according to Alliance’s forecasts, it can can process its farmers’ sheep, deer, and cattle at our four other South Island plants during peak season, without the need for a fifth plant.

He acknowledged the feedback from our people over the consultation period.

“Despite exploring all possible alternatives, we were left with no viable option.

“While we know the outcome is not what anyone wanted, we are committed to working through the closure process as respectfully as possible.”

Smithfield staff who are made redundant will receive payments according to their employment agreements.