Workers leave the Cadbury factory in Dunedin after a
meeting over future job cuts. Photo by Craig Baxter.
Major city employer Cadbury has confirmed 145 job losses are
proposed at its Dunedin plant.
But the confectionery giant says it will invest up to $51
million in Dunedin during the next two and a half years.
Amid mounting speculation around the city today, with
management and staff meetings being called, Cadbury announced
at 3.30pm a $A135 million ($NZ166 million) investment package
for the Dunedin site and two in Australia.
There will be $51 million being invested in Dunedin, at a
cost of 145 jobs, $61 million at Claremont in Tasmania at a
cost of 160 jobs and $22 million at Ringwood in Victoria at a
cost of 25 jobs.
Cadbury's spokesman Daniel Ellis said from Melbourne
yesterday that the proposal to make the New Zealand staff
redundant would move into a three to four week consultation
stage and a final decision was likely by mid to
late-September.
In November 2006, Cadbury announced a $20 million investment
in its Dunedin plant, to deliver a 200% increase in
production of its chocolate crumb ingredient.
The Government contributed $2 million of the $20 million for
a separate crumb research and development centre at the
Dunedin plant.
Potential for change was first signalled in March 2007 when a
second worldwide restructuring plan for Cadbury Schweppes,
the worlds largest confectionery group, was announced, with
the intention to cut 15% of its 50,000-strong global
workforce over four years, but no changes for Dunedin were
aired at the time.
Service and Food Workers Union southern region secretary
Campbell Duignan said while staff were aware of such
proposals, today's announcement was a shock.
"We had been led to believe there would essentially be a
product line by product line assessment process made," he
told NZPA.
"So we envisaged it would be a process that happened over
time, but what they have clearly done is gone away and had a
look at the whole operation and made some decisions about
simply specialising production out of particular factories.
"Essentially, that's what they have announced today with the
associated job loss on the one hand and capital investment on
the other."
He said while staff were stunned, there appeared to be some
acceptance, and it was positive that money was being invested
in the plant.
"We're just upset that it's at the cost of so many jobs."
Mr Duignan said there was also cold comfort that the lay-offs
would not be enacted for a few more months.
"In pretty poor circumstances it could certainly be worse,"
Mr Duignan said.
He said the union would now liaise with counterparts in
Australia and work to try to minimise losses and the impact
of losses.
Cadbury Schweppes managing director for confectionary in
Australia and New Zealand, Mark Callaghan, said the changes
were needed now in order to be able to remain competitive.
"When implemented, these changes would reduce complexity,
remove duplication and improve 
capacity, allowing us to be more
innovative and responsive to consumer needs," he said.
Mr Callaghan said the company realised the difficulties
placed on the affected staff and would provide career
planning and support services. - with NZPA
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