Hundreds of jobs hit by Smithfield Timaru meatworks shutdown: reports

Alliance Group has confirmed the closure of its Smithfield meat processing plant in Timaru, South Canterbury, impacting approximately 600 employees who are primarily employed during peak processing seasons, according to reports.

During a meeting at Aorangi Stadium last week, staff were informed about the impending shutdown, which follows a two-week consultation period involving employees and unions.

While Alliance has stated that affected staff will have opportunities to apply for redeployment at its other facilities, it is anticipated that most Smithfield employees will ultimately face redundancy, the New Zealand Herald reported.

According to the report, employees who will be made redundant are expected to receive compensation based on their employment agreements.

"Our thoughts are with our people and their families affected by the closure of this plant," said Chief Executive Willie Wiese as quoted by the New Zealand Herald.

"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."

Reason for the shutdown

The shutdown is primarily attributed to a decline in sheep processing numbers due to changing land use, which has resulted in surplus processing capacity within the company's network.

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

He noted that forecasts indicate that the remaining four South Island plants can adequately handle processing demands without the need for the Smithfield facility.

Processing at Smithfield, which includes venison day shifts, will continue until at least the end of December. After that, operations will cease.

Wiese mentioned that the company had explored all possible alternatives but found no viable options: "While we know the outcome is not what anyone wanted, we are committed to working through the closure process as respectfully as possible."

Taskforce to help Smithfield workers

Ahead of the announcement, the Timaru District Council launched earlier this month a taskforce to support those affected by the closure of the Smithfield plant.

The council said the taskforce was formed to coordinate support and identify opportunities with local employers for those who may be losing their jobs at the meatworks.

"The families of those working at Smithfield are a valued part of our community and we want to work together to ensure that every opportunity is made available to them locally," said Timaru District Mayor Nigel Bowen in a statement.

"Our economic development body, Venture Timaru, will be working closely with the South Canterbury Chamber of Commerce to identify local businesses needing staff and link them with those seeking employment."

According to Bowen, the council will also ensure that there is a single place where people can access advice and resources that they need.

"I've been really heartened by the outpouring of sympathy and support that we've had from the community since this announcement; it's now critically important that we all work together to help these families through a tough time," he said.