Closure to leave over 30 jobless

Heinz Wattie’s is closing the Gregg’s factory in Dunedin. PHOTO: STEPHEN JAQUIERY
Heinz Wattie’s is closing the Gregg’s factory in Dunedin. PHOTO: STEPHEN JAQUIERY
Closure of the Gregg’s coffee factory in Dunedin will cost more than 30 people their jobs.

The room went quiet after workers received the news at a 1pm meeting yesterday, a union delegate said.

Confirmation of the closure had been expected, but was hard to take, the delegate from Etū said.

‘‘There weren’t a lot of questions ... because there was nothing we could do. The company had made up their mind,’’ he said.

Some staff had worked at the Forth St site for 10 to 15 years and a few had gone beyond that.

The business has been part of the city since 1862, when Irish-born William Gregg established the coffee and spice manufacturing business.

Owner Heinz Wattie’s had flagged the closure as part of a proposed downscaling of its national operations, which will result in 300 job losses.

Dunedin Mayor Sophie Barker said she was saddened for the employees of Gregg’s, their families and friends.

‘‘It’s a nasty shock going into the weekend,’’ she said.

City councillor Andrew Simms said the city would do all it could to turn the situation into a positive outcome for Gregg’s staff.

Economic development staff from the Dunedin City Council had started working with government agencies, Business South and local employers, he said in a social media post.

‘‘We must fully acknowledge the anxiety and uncertainty caused for many loyal Gregg’s staff, but already several prospective employers have indicated a willingness to take more staff on.’’

Heinz Wattie’s said yesterday it was proceeding with plans to close manufacturing sites in Dunedin, Christchurch and Auckland, as well as frozen packing lines in Hastings.

Managing director Andrew Donegan said the decision was necessary to strengthen the business so it could continue to manufacture and sell products in New Zealand.

It was the only way forward for the long-term viability of the business, he said.

‘‘Our focus is on supporting those who are affected with redundancy packages, employee counselling, career transition services and redeployment where possible.’’

Etū director Finn O’Dwyer-Cunliffe said earlier this month the announced closures were a massive blow for workers, their whānau and the wider community.

‘‘These workers have given decades of their lives to this company. For many, this is the only job they’ve known,’’ he said.

‘‘The impact on them and their families will be severe.’’

The delegate in Dunedin asked not to be identified, but said the future had looked bleak for a while.

‘‘Another Dunedin icon gone,’’ he said.

‘‘And we’re the victim of corporate neglect.’’

It is expected the factory could close between July and September.

‘‘We know the job market’s not particularly strong out in Dunedin at the moment, so it could be difficult,’’ the delegate said.

In Auckland, the La Bonne Cuisine factory is to close.

In Christchurch, the Wattie’s frozen vegetable factory will shut.

Heinz Wattie’s said almost 50 people from the frozen packing lines in Hastings would be redeployed and some retrained.

It was stopping its frozen vegetables, coffee and dips businesses.

grant.miller@odt.co.nz

 

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