Snack bar lav-offs

Press, 5 March 1988, Page 3

Snack bar lav-offs

Forty-five workers at the Linwood snack bar plant of the New Zealand Food Group will be made redundant with its sale to the Melbourne-based Rowntree Hoadley, Ltd.

The redundancies, mainly among United Food! and Chemical Workers’ Union members, amount to almost half the present workforce of 102.

The union's southern area I secretary, Mr Alex Pattison, I . said union officials would begin redundancy negotiations with ; the company or its receivers next week.

"Obviously we are not very; happy about it, but there is not a lot we can do, apart from negotiate

with the company on the terms and conditions of the redundancy,” he said. The New Zealand Food Group was , put in receivership last month, although there I was immediate speculation that; it would be quickly soldi because it had been trad-; ing profitably since it was’ established in 1983. The sale for; an undis-| closed I sum announcedi yesterday has ! not been! settled i because the ap-i. proval of the! Overseas! ’ Investment Commission 1 will be needed': The I agent i for the receivers, Mr IChris Turland, !of Arthur Young chartered accountants in

Christchurch,isaid it could take “a few weeks” to get that approval. The staff ujere called to a meeting; yesterday morning and told of the sale and the redundancies. Individual j workers have not yet been told they will be,laid!off. The company vyas taken over by the;Charter Corporation in June 1986, but the corporation ran into financial difficulties after October's , (sharemarket crash, and receivers were appointed in January. That put I pressure on the New Zealand Food Group because it needed funds for its expansion in products. The company makes

Canterbury muesli bars, carob bars and otheij products. Mr Turland said he believed Rowntree Hoadley intended to continue production of the snack bars, and would keep up export markets in I Australia, the United States and Europe. | j • He said the 45 redundancies were needecj for i"efficiency improvements 'already planned, j ! and necessary to ensure the ■ products remain competitive.” ; Rowntree Hoadley makes confectionery, including Kit Kat; bars, Smarties and Aero bars. It is a Wholly owned Subsidiary of Rowntree /pic of Britain. | [