Union bitter as 950 freezing works jobs go

Press, 25 July 1986, Page 1

Union bitter as 950 freezing works jobs go

PA < Auckland The owners of the Shortland freezing works yesterday described the impending closing of the Otahuhu plant as a logical step.

The Auckland Fanners’ Freezing Co-op, Ltd, said it was the best course, not only for the company but for the meat industry. The president of the Auckland Freezing Workers’ Union, Mr Frank Barnard, reacted bitterly.

"Are these people (Affco) human — or do they just have ice in their veins?” he said. Affco, which took over the works 24 days ago, confirmed the closing yesterday. About 950 jobs will be lost when it shuts on October 24.

The company’s managing director, Mr Max Toy, said there was a 40 per cent over-capacity throughout the industry, and the closing would reduce Affco’s own capacity about 25 per cent.

“The question of overcapacity in the industry was foremost in our minds when we negotiated the purchase,” said Mr Toy. “We have carefully considered all alternatives; no-one likes putting people out of work.

"Shortland was the logical place to close because of its urban location and the fact that employment opportunities for the people involved are far better than those available at our other plants. “From the company’s point of view there is a far better opportunity for asset recovery from Shortland than our other plants which are much farther ahead in redevelopment and modernisation,” he said. He announced a redun-

dancy agreement of four weeks pay for the first year of service, two weeks pay for each subsequent year up to a maximum of 20 years, and one week’s pay for each year beyond 20.

A job-search programme was under way and help was being sought from the Labour Department, Mr Toy said. Mr Barnard said the company appeared to have little compassion for its employees. “These people only know the meat industry. What is to become of them? Does the company care now that it has used them? They say they do, but do they really?”

The union’s Shortland secretary, Mr Bert Billings, said he found it hard to accept that Shortland

should close when he expected it would either break even or make a small profit this year.

"We believe that Affco’s other plants will lose about $l2 million between them.

“If closing an efficient plant is Affco’s idea of helping the Industry it is stupid,” Mr Billings said.