Heinz Wattie’s Limited today proposed the closure of three manufacturing facilities in Auckland, Christchurch, and Dunedin, and the cessation of packing operations at its Hastings site, impacting approximately 350 jobs across New Zealand. The company announced the proposed changes as part of a strategic shift, citing increasingly difficult manufacturing conditions and ongoing pressure on its commercial performance.
The proposed closures will affect the production of frozen vegetables, Gregg’s coffee, and a range of dips sold under the Mediterranean, Just Hummus, and Good Taste Company brands, which the company intends to phase out over the course of the year. Heinz Wattie’s managing director Andrew Donegan stated the decision was “not taken lightly,” adding that “numerous alternatives and options were explored before reaching this phase.”
The move has drawn immediate criticism from the E tū union, which represents affected workers. Union delegate Kathy Perrin, a 46-year veteran of Heinz Wattie’s, expressed dismay at the prospect of job losses, particularly for long-serving employees. “The average length of service is around 30 years. There is nowhere else to travel,” she said. Perrin also raised concerns about the treatment of seasonal workers, who she claimed could be made redundant without financial compensation.
E tū director Finn O’Dwyer-Cunliffe described the proposal as a “huge blow” to workers and their families, emphasizing the potential ripple effects throughout the communities that rely on the affected facilities. Approximately 220 growers in the Canterbury region alone supply the Christchurch site. O’Dwyer-Cunliffe linked the closures to a broader trend of manufacturing decline in New Zealand, citing recent closures at Carter Holt Harvey, Sealord, and Kinleith Pulp and Paper.
“We should be investing in local manufacturing, keeping people employed, and strengthening our food security. Instead, we’re watching iconic New Zealand brands disappear from our production lines,” O’Dwyer-Cunliffe stated. He criticized the government for being “asleep at the wheel” as local manufacturing collapses, calling for a response to what he termed “market failures.”
The company attributed the proposed changes to a challenging manufacturing environment in New Zealand, exacerbated by global inflation and industry-wide difficulties. Growers have also noted increased competition from overseas imports, particularly following the disruption caused by Cyclone Gabrielle.
Heinz Wattie’s stated it would consult with employees, union representatives, growers, suppliers, and retail partners throughout the consultation period. The company indicated it would explore redeployment opportunities for affected workers where feasible. The timeframe for the consultation process was not specified, but E tū has already called for an extension, deeming the initially proposed period “completely inadequate and pretty disrespectful.”
