Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra to lay off up to 110 staff at Waikato packing plant

Fonterra to lay off up to 110 staff at Waikato packing facility

By Paul McBeth

July 23 (BusinessDesk) - Fonterra Cooperative Group, the world's biggest dairy exporter, may lay off a third of its workers at the Canpac packing facility in Waikato, which it plans to focus on paediatric nutritional products.

The Auckland-based company will scale back operations at the plant to five-days-a-week from its current seven days, and may cut 110 of the 330 staff employed at the site, after volumes at the plant were reduced, it said in a statement. It will look to fill jobs at other sites with affected staff, it said.

"This is not a decision we have taken lightly and we are working through a consultation process with our people around the proposal," Robert Spurway, Fonterra director of NZ operations, said. "We are continuing looking at where we can further invest in the Waikato, but have to make decisions based on what aligns with Fonterra’s strategy and will drive the greatest returns to our farmer-shareholders."

The plant is Fonterra's largest secondary packager of milk powders, and supplies branded nutritional powders, bulk blended nutritional milk powders, cans and can components to customers across the globe, according to its website.

In May, Fonterra flagged $400 million to $500 million of additional capital spending over the next three or four years building new capacity to reduce product mix constraints, including two new milk powder plants.

Last year, it embarked on a savings drive to strip out up to $65 million a year by eliminating 300 jobs, centralising services, cutting duplication and simplifying management structures.

Units in the Fonterra Shareholders' Fund were unchanged at $5.99, and have increased 3.3 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Scoop Business: NZ Net Migration Reaches New Annual Record In June

New Zealand annual net migration rose to a new record in June as arrivals continued to be bolstered by Chinese and Indian students, while fewer locals departed for Australia. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news