P.M. ‘turned his back’ on closing

Press, 17 September 1980, Page 3

P.M. ‘turned his back’ on closing

PA Auckland The Prime Minister (Mr Muldoon) “deliberately turned his back” on the pending closing of the Southdown freezing works and “high-tailed it overseas,” said the Leader of the Opposition (Mr Rowling) yesterday. “We find today, that Mr Muldoon knew about the closing before he left,” said Mr Rowling. “The rotten part about it is that he did not tell his Minister of Labour (Mr Bolger), the Minister responsible for the people’s side of it. “I think that the Government, immediately on hearing of the proposal to close the works, should have entered into negotiations with the company,” Mr Rowling said. “Even if some changes had had to take place, some lead time could have been built into the decision.” Mr Rowling yesterday broke off a meeting with the Manufacturers’ Association to visit the works to address workers and seek talks with the management. The president of the Federation of Labour (Mr W. J. Knox) yesterday attacked what he called the “couldn’t care less” attitude of Mr Muldoon.. Mr Muldoon had acted irresponsibly by not taking Mr Bolger into his confidence. Mr Bolger apparently did not know until about 2 p.m. on Monday what was going to happen, Mr Knox said. The Auckland Farmers’ Freezing Co-operative’s general manager (Mr T. Gibson) said yesterday that when the company approached Mr Muldoon just before he left for overseas early this month, Mr Muldoon was asked to keep news of the pending closing confidential. Mr Muldoon had been told

an announcement would be made on September 15. Southdown freezing workers yesterday rejected redundancy offers. After a stop-: work meeting at the plant, which faces closing on Octoiber 17, the president of the Freezing Workers’ Union (Mr F. E. Barnard) said the men had agreed to continue work as normal, but he and other union officials would have discussions with the Auckland Trades Council tomorrow.

Though union officials would not confirm it, it is believed the company’s rejected offer was to pay all men a minimum of $l5O a week while they seek alternative jobs during the next five weeks.

Five Labour Department employment officers will visit the works today to advise workers who will be made redundant.

Mr Bolger said yesterday that the department also planned to set up a vacancy board at the works. In effect, it would establish a satellite office.

Mr Bolger said he regretted the suddenness of the decision to close the works. More time would have given the department more opportunity to find alternative work. .. i

Mr -.Gibson said that there had been a balanced reaction to this announcement of the closing, which will put about 1000 men out of work.

“We had no option. What most concerned us was the hardship which workers and their families would face through loss of jobs.” The company had “done its best” in giving five weeks notice of the closing. Its board had decided at the end of May that the plant must close by June next year, or earlier if possible, Mr Gibson said. “What we thought about was a date far enough in advance of the new season to give the work-force a chance to get work at the other plants before the new season.

“Many seasonal workers who do not start until No-vember-December are already in out-of-season jobs and an early date allows them to retain these jobs. “Also, we wanted to get the bobby calf season over before killing stopped,” Mr Gibson said.

When killing ceased at Southdown, stock would go

to the company’s other three works. ... . Mr Gibson said the company was justified in spending $3 million on a new boning room and airfreight chillers early in 1977 because they were requirements planned in advance. The boning room had to be modernised under an E.E.C. health regulation. “At that stage, delicensing of the meat industr' had not reared its head, and there was considerably more cattle to kill then than there are today.” In Parliament yesterday, the Opposition forced a snap debate on what it called the “execution” of Southdown.

The Deputy Leader of the Opposition (Mr Lange) criticised the Government for its lack of action to save the plant. The closing had been announced in spite of assurances given to at least one union official that there was a minimum of five years work left, he said. The closing would be disastrous for the whole South Auckland area, Mr Lange said. It would mean Sl5 million in wages would be taken from South Auckland and 1500 more people would be out of work this Christmas.

Defending the Government’s stand, Mr Bolger said the decision to close the works was made by the company alone. The plant’s killing charges were higher than those at other works. The Minister of Agriculture (Mr Maclntyre) said that the company had priced itself out of the market—an “inevitable process” _ — to cover excessive claims on the employers. The company was one of the leaders in mechanisation, but the union had banned mechanisation. The Minister of Justice (Mr McLay) noted that Southdown had lost $6 million in three years and that because it was in an urban area it paid $1 million in rates, water and drainage levies.

The Social Credit Leader (Mr B. C. Beetham) said New Zealand could not afford any more such closings. The solution to the problem which had led to the plant’s closing lay in increased production, the availability of finance at reasonable terms to farmers and freezing companies, and in spreading killing peaks.