Sealord Proposes Closure of Nelson Fish Factory, Impacting 79 Jobs

Sealord, a prominent commercial fishing company in New Zealand, has announced plans to close its coated fish factory in Nelson. The decision, communicated to staff on October 13, 2023, involves opening consultations on a proposal that would eliminate 79 permanent jobs, including 57 factory positions and 22 management or office-based roles. Despite this setback, Sealord confirmed that its deep-sea fishing operations and canned tuna products will remain unaffected.

Chief Executive Doug Paulin cited escalating costs and demands for higher margins from supermarkets as key factors in this difficult decision. He noted, “Unfortunately, like many manufacturing businesses in New Zealand that have been forced to close in recent times, we are similarly affected by hugely challenging economic factors.” Paulin highlighted that rising operational costs, particularly related to labour, electricity, and freight, have necessitated a reassessment of the company’s approach to its retail frozen branded business.

Proposed Changes and Future Outlook

In conjunction with the factory closure, Sealord is reviewing the Nelson Site Collective Agreement, which encompasses union workers involved in various land-based operations, including its wetfish factory and cold storage facilities. Paulin expressed a desire to implement changes that could enhance the economic sustainability of production in the region. “We are hoping to agree changes to the Collective Agreement that will help keep Nelson land-based manufacturing operating,” he stated.

Affected employees are encouraged to provide feedback during the consultation period, which will last for three weeks. Paulin acknowledged the long-standing commitment of many factory staff, noting that “many of our coated factory staff have worked at Sealord for much of their working life and the team is like one big whānau.”

Additionally, the possibility of relocating coated fish production offshore is being considered as part of the company’s strategy moving forward. The announcement follows another significant job loss in the region, as over 140 workers at the Carter Holt Harvey Eves Valley sawmill were informed of its impending closure just a day prior.

Sealord’s decision marks a pivotal moment for the company and the local community, as it navigates the challenges presented by the current economic climate. As consultations progress, the focus remains on supporting the impacted workforce while exploring viable paths for the future of manufacturing in Nelson.