Commercial fishing company Sealord plans to shut down its coated fish factory in Nelson.
The company announced it is starting consultations on a proposal to eliminate 79 permanent positions, including 57 factory jobs and 22 management or office-based roles.
According to chief executive Doug Paulin, rising costs and demands for higher supermarket margins prompted the decision.
“Unfortunately, like many manufacturing businesses in New Zealand that have been forced to close in recent times, we are similarly affected by hugely challenging economic factors,” he said.
Sealord said the decision would not impact its deep-sea fishing operations or its canned tuna products.
“Increasing operating costs, particularly labour and electricity, plus freight, exacerbated by requests for higher supermarket margins, means we must reconsider the way we manage our retail frozen branded business.”
“Despite the best efforts and mahi of our workers, we may have to exit the frozen coated fish business that we have built up over many years.”
Sealord also revealed a proposal to amend the Nelson Site Collective Agreement, which covers union workers in land-based operations such as the wetfish factory, cold store, dry store, and by-products plant.
“In addition, we’re reviewing land-based factory operations as we look at how we can reduce operating costs and improve the economic sustainability of production in Nelson,” Paulin said.
“As part of this, we are hoping to agree changes to the Collective Agreement that will help keep Nelson land-based manufacturing operating.”
The company is also exploring the option of processing and packaging coated products with Sealord-caught fish outside New Zealand to maintain its coated frozen fish range in both New Zealand and Australia.
Impacted staff have been urged to submit their feedback on the proposals before the consultation period ends on September 26.
A final decision is expected in October.