Dozens of workers will lose their jobs with the closure of Dunedin’s Gregg’s coffee factory announced this afternoon.
Owner Heinz Wattie’s had flagged the closure as part of a downscaling of its national operations which will result in 300 job losses.
The company has declined to say how many roles will go with the Gregg’s closure but the factory is believed to have a staff of around 50.
It has been part of the city since 1862, when Irish-born William Gregg established the coffee and spice manufacturing business.
Dunedin Mayor Sophie Barker told the ODT earlier this month she was shocked by the news of the impending closure.
“We’ve gone through closures like this before with multinationals and it’s never easy and often you get an inkling in the wind, but I think this is quite a surprise and a big blow.
“I think we’re all feeling incredibly sad because Gregg’s has been an iconic brand in Dunedin.
“It’s a huge loss of part of our cultural landscape … it’s something that’s always been there,” Ms Barker said.
E tū director Finn O’Dwyer-Cunliffe said earlier this month the announced closures were a massive blow for workers, their whānau and the wider communities that depended on these jobs.
“These workers have given decades of their lives to this company. For many, this is the only job they’ve known. The impact on them and their families will be severe.
Heinz Wattie’s managing director Andrew Donegan said in a statement today the decision was necessary to strengthen the business so it can continue to manufacture and sell products in New Zealand.
After careful consideration and analysis of proposed suggestions, we have reached the conclusion that closing these sites and exiting these categories is the only way forward for the long-term viability of the business. While change is needed, this is an incredibly difficult time for our employees and business,” he said.
Today’s announcement would result in the loss of approximately 300 roles across impacted sites which includes some commercial roles.
With site closures phased over the course of the year, final numbers will not be known for some time as redeployment opportunities continue to be explored.
“The majority of those impacted are long-term experienced and skilled employees who would be sought-after candidates for many employers”, Donegan said.
E tū delegate Kathy Perrin has worked at Wattie’s for over 45 years. She says the announcement hit hard.
“It is disappointing. We had a thread of hope. Our members have mortgages, high rents, and live pay cheque to pay cheque.
“There will be a lot that will be heartbroken. We have over 65s renting, families with babies, and members with health issues. It is devastating.”