18 Oct 2024

Smithfield meatworks staff mull future in Timaru ahead of Alliance meeting

9:02 am on 18 October 2024

South Canterbury man Ray Bowman did not muck around when he learned that he - like hundreds others at Smithfield - was facing probable redundancy.

The 45-year-old stopped at the local Four Square, bought a box of beer, then went home and drunk it.

He woke up the next morning and told himself, "I need to get a job."

Having worked several years at the Timaru meatworks since finishing high school, in between a decade-long stint across the Tasman, Bowman established himself as an experienced toiler within the plant's boning room.

Bowman had been planning to work at Smithfield until he retired.

That was until the plant's owners Alliance brought those aspirations to a standstill last month.

"It was pretty hard," he said.

"I had just built a house and I was looking to have my future there."

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The following Monday, he and his family drove an hour north to Ashburton and by the time they left, Bowman had secured a job at the local meat processors.

It was a major weight off for the Pleasant Point father.

"I had to," he said.

"I've got all of this going on, I've got kids. I couldn't wait, I've got to work."

Ray Bowman

Ray Bowman has already secured a job at an Ashburton meatworks, one hour north of Timaru. Photo: RNZ / Nate McKinnon

Hundreds of Bowman's colleagues are bracing for the worst as a final decision on the long-standing plant is revealed on Friday.

Alliance workers will learn their fate during an all-staff meeting at 9am, with management expected to confirm the closure of the 139-year-old site, a move that would leave about 600 employees out of work.

The meat co-operative announced a proposal, to discontinue sheep meat, calves and venison processing, to shocked employees last month.

It followed a loss of almost $98 million for the 12-month period ending September 2023.

Venison processing would continue at the plant until the end of the year before being decommissioned.

Consultation on the plan ended last week, although it is understood a pre-shutdown cleanout was already under way at the plant.

The situation has left many other workers grappling with their future prospects.

PJ Speechly

PJ Speechly says the stress and uncertainty has affected her sleep. Photo: RNZ / Nate McKinnon

Smithfield worker PJ Speechly admitted the stress and uncertainty had resulted in little sleep.

"We've spoken to our bank and mortgage lenders to put our mortgage on holiday," she said.

"It's just the uncertainty of what's happening on Friday because we don't know when it (redundancy) will be paid out, or if we've got jobs.

"Even going forward, to get another permanent job, they're asking, 'When can you start?'

"Technically, we're still employed."

It was not the first dilemma the Pleasant Point woman had faced during her time at Alliance.

Speechly was previously employed at Christchurch's Sockburn plant that closed in 2012, a result of an Alliance reshuffle of its beef and processing facilities.

Alliance Smithfield plant

Photo: RNZ / Nate McKinnon

With history set to repeat and no set plan beyond Friday's staff meeting, Speechly was seeing this as an opportunity.

"I thought about approaching [MSD] for re-training because I've been in that industry for so long, my computer skills aren't what they probably should be, with school-leavers as competition," she said.

"It's just about finding reemployment."

Alliance Group chief executive Willie Wiese had put the proposed closure down to "a decline in sheep processing numbers as a result of land-use changes".

Although Bowman said the co-op had done plenty for him and the community, he remained dubious on Alliance's rationale.

"How did they lose $98 million, or are they sitting on a lot of stock that they haven't sold?

"When you make a lot of money over the last 10 years, as far as I'm aware the company's been doing quite well.

"It can't be lambs and forestry, it would have to be the way it's been managed."

Smithfield's closure is expected to cost the local economy between $90-$100m per year, a forecast that had sent shudders through the local business sector.

South Canterbury Chamber of Commerce chief executive Wendy Smith said businesses were "deeply concerned".

"Alliance has been here for a long time servicing this industry and servicing our community.

"We've seen a huge outreach from businesses looking to try and support workers should that decision be announced and it not be the one that we're hoping for."

Timaru Mayor Nigel Bowen said some families would be forced to leave the area.

"People are hurting and it'll be really hard if you're in that situation," he said.

"Unfortunately, the whole country is experiencing a downturn and that's when businesses make these decisions.

"We need to be optimistic and look at what the opportunities are."

The district remained a manufacturing stronghold and other businesses would be on the lookout for talent, he said.

Bowen called on the government to ponder the upshot for the regions when implementing certain policies and legislation.

"I'd like central government to give some real thought, if they're focused on the ETS and carbon forestry, what does that mean for jobs and communities?"

The Ministry of Social Development (MSD) had ramped up its local resource and had established a one-on-one support service.

A cross-agency job fair - led by MSD, the South Canterbury Chamber of Commerce and economic development outfit Venture Timaru - is earmarked for next month.

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