Sealord Proposes Seasonal Operations, Threatens Job Cuts

Sealord, a prominent commercial fishing company, has announced plans to significantly restructure its operations, proposing to shift to a seasonal model that may lead to further job cuts. This announcement follows the recent decision to close its coated fish factory in Nelson, resulting in the loss of 79 jobs.

Under the new proposal, Sealord intends to operate its wetfish and byproducts factories, along with the fresh fish trawler, the Thomas Harrison, exclusively during the hoki season from May to September. Chief Executive Doug Paulin stated that while 81 permanent staff would retain their positions in Nelson, the company aims to keep approximately 400 seasonal roles available during this period.

Paulin emphasized the need to prioritize roles for current employees from the wetfish and coated factory if the proposal is implemented. He explained that this shift is designed to avoid a complete closure of the Nelson site, which would have resulted in a far greater impact on local employment and the regional economy.

“This seasonal proposal would mean that we’re able to retain the majority of our Nelson-based operations and the jobs associated with them,” Paulin noted. He added that the restructuring would also help preserve operations related to the cold store, dry store, and office support roles.

The motivation behind this proposal is linked to the challenging economic landscape facing Sealord. Paulin pointed out that rising operating costs, declining global commodity prices for frozen fish, and increased regulatory compliance costs have pressured the company’s financial sustainability.

“The export commodity products produced in our wetfish factory in Nelson are loss-making in every month except for in hoki season,” he explained. The situation has worsened recently due to price drops alongside a sharp rise in costs and a decrease in the volume of fish available for processing outside the hoki season.

For Sealord to remain viable in the long term, Paulin stressed the necessity of reducing costs and focusing on its core business—fishing. “Customer demand for wild harvest, sustainably caught New Zealand fish remains strong,” he said, “but the environment we operate in is increasingly complex and uncertain.”

The proposal to transition to a seasonal operation aims to lower operating costs and improve returns from commodity export products. Paulin expressed confidence that these changes would allow Sealord to invest in effectively catching and processing fish during the hoki season.

“Our people have worked incredibly hard to lift the performances of our Nelson-based operations,” he said. “Unfortunately, the cost of doing business in New Zealand has increased substantially, and without change, it would threaten the viability of the Group, which currently employs around 1,750 people.”

The consultation period regarding the closure of the coated fish factory concluded on October 3, with a decision expected to be announced shortly thereafter. The company is anticipated to reveal its stance on the proposed seasonal operations by the end of next month.

The local job market has recently faced turbulence, with Carter Holt Harvey announcing the closure of its Eves Valley Sawmill, which will eliminate 142 jobs. Additionally, Griffin’s Snacks informed its employees that production at the Nelson factory, which produces Proper Crisps, will cease as operations transition to Auckland by late 2027, impacting 82 staff.

As Sealord navigates these changes, the broader implications for the local economy remain a point of concern for workers and community members alike.