Sealord Confirms Downsizing

MEDIA STATEMENT
EMBARGOED UNTIL 4.30 PM THURSDAY 26 MARCH 2009

Sealord Confirms Downsizing

Sealord today confirmed it will transfer 7000 tonnes of fish processing to the freezer trawler Independent 1 and move to single shift processing at its fish plant at Vickerman Street, Nelson.

Chief Executive Graham Stuart said Sealord went into the consultations to secure 400 land-based jobs for the longer term by making shore based processing a viable option to processing at sea and making it worthwhile to invest in Vickerman Street.

“Sadly we haven’t achieved that goal yet, although moving some processing to Independent 1 gets us part-way there. The site is still not viable compared to processing at sea and that raises questions over the longer term.” During the period of consultation plant staff numbers have reduced through natural attrition. Over the next six months approximately 130 land-based staff positions will be released. The Independent 1 will replace the fresh fish trawler Taimania, creating new positions at sea.

The decision follows consultations with staff and the Service and Food Workers Union and the Maritime Guild which began with a briefing to Unions on February 18. As part of the consultation process Sealord provided staff and their representatives with more than 160 pages of detailed information.

Mr Stuart said more than 400 processing and salaried staff will continue to be employed at the Vickerman Street site which has a fish plant, a crumbed product plant, a coolstore and wharf facilities. The fish plant was at risk because processing fish at Vickerman Street costs $9.9 million more per year than processing at sea.

“The plant needs substantial improvement before it has a secure future. A $9.9 million profit differential between processing at sea and processing on land was much too big for us to ignore.

“Moving 7000 tonne of processing to Independent 1 reduces the differential, but it leaves a shortfall of $3.5 million.

“We need to at least close this gap to secure the future of the site.”

Released by: Sealord Group Ltd, 26 March 2009

ENDS

© Scoop Media