Sealord proposes disestablishment of 59 roles under seasonal plan

Nelson-based firm Sealord is proposing the disestablishment of 59 roles under a new seasonal plan aimed at reducing the seafood company's costs and complexity.

The proposal seeks to make Sealord's wetfish and by-products factories, as well as its Thomas Harrison fishing vessel, operate during only the hoki season from May to September instead of year-round.

"Instead of closing our Nelson site completely, which would impact significantly more permanent employees and be a major economic hit for the region, this seasonal proposal would mean that we're able to retain the majority of our Nelson-based operations and the jobs associated with them. This also includes our cold store and dry store, and office-based support roles," said Sealord CEO Doug Paulin in a statement.

"In total, we would retain 81 permanent jobs and 400 seasonal roles, and save over 90% of the economic benefits to the region."

Sealord is already consulting with impacted staff about the plan, which comes after it announced earlier in September a proposal to cut 79 permanent jobs as it closes its coated fish factory in Nelson.

"We would prioritise roles for our hard-working wetfish and coated factory staff during hoki season should these proposals go ahead, and they wish to come back," the CEO said.

A decision on the coated fish factory is expected to made on October 3, while a decision on the seasonal plan is expected in mid-October.

'Challenging economic environment'

Paulin attributed the plans to a "challenging economic environment."

"The reality is that for Sealord Group to be economically sustainable long term, we must reduce our costs and decrease complexity to focus on our core business of fishing," he said.

"Customer demand for wild harvest, sustainably caught New Zealand fish remains strong but the environment we operate in is increasingly complex and uncertain. This proposal to transition to a seasonal operation reduces our operating costs, increases returns from these commodity export products to a viable level, and allows us to invest in what we do best, which is catching and processing fish during the hoki season."

According to the CEO, not shifting to a seasonal arrangement would threaten the viability of the company, which employs around 1,750 people.

Job losses in Nelson

Sealord's proposals come as Carter Holt Harvey also announced it is closing its Eves Valley sawmill, impacting 142 employees, 1News reported.

Griffin's Snacks is also proposing the closure of its Proper Crisps factory in Nelson, which will potentially affect 82 roles.

Ali Boswijk, chief executive of Nelson Tasman Chamber of Commerce, told 1News that she has never seen this situation before.

"I've lived in Nelson for 30 years next year and I don't have any memory of it being like this at all," Boswijk told the news outlet.

She added that the job losses will lead to people leaving to search for work.

"If you put yourself in their shoes, you're going to be looking at every opportunity," the chief executive said.