The Cadbury factory in Dunedin will close in early 2018, putting hundreds of people out of work, it has been confirmed this morning.
The union E tu said Mondelez has agreed to look to New Zealand manufacturers to process New Zealand brands including chocolate fish, Jaffas and pineapple lumps.
A working party has been set up with key partners in Dunedin to work on a business plan to try to secure the manufacturing of the brands in the region.
The group comprises the union, the Dunedin City Council, the Otago/Southland Employers Association, Mondelez, and MPs.
E tu said the third-party manufacturing could involve a co-operative or new manufacturer working under contract to Mondelez.
An expansion of jobs at Cadbury World has also been promised.
"Any jobs created through this venture would be offered first to redundant Cadbury workers with the necessary skills,'' E tu sector strategic director Neville Donaldson said.
"This is a sad day for those loyal, high-performing workers who will lose their jobs. It is also bad news for the people of Dunedin. These are high-value jobs, and an export business which is disappearing,''
"We look forward to working with Mondelez to identify a viable business plan which will create or retain employment as well as use the skills of this loyal and long-serving group of workers."
The move will put 360 people out of work. It is unclear how many extra jobs will be created at Cadbury World.
"We take some comfort from the fact that Mondelez has agreed to take part in a working party which will look at options for continued processing in New Zealand for the local market.
"Although much has been made of a current jobs boom in Dunedin, these jobs, if they exist, tend to be part-time and minimum wage,'' Mr Donaldson said.
Amanda Banfield, Mondelez's area vice-president for Australia, New Zealand and Japan, said the company's focus was helping to minimise the fallout for workers and the community.
''Following four weeks of detailed consultation with the union and employees to assess alternatives, we could not find a viable option that met global benchmarks and ensured the ongoing sustainable operation of the factory,'' she said.
''Our focus is now on helping our team and minimising the impact of this decision on them and the broader Dunedin community.''
She said the company would meet all redundancy requirements in the employment agreements and offer a support package that includes outplacement, retraining and job search assistance plus financial planning.
