The number of people losing their jobs as a result of the closure of the Goodman Fielder factory in Oamaru has risen to 34.
Last week, the Australasian food manufacturer announced it would stop making its Irvines and MacKenzie pies, with the loss of 19 jobs at its Ayr St factory.
But this week, Goodman Fielder operational site manager Ian Moore confirmed a further 15 workers contracted through a Timaru job agency were also being let go.
Mr Moore and Waitaki District Council Mayor Gary Kircher, however, are confident some of the workers will be able to fill existing vacancies in other businesses in Oamaru.
Goodman Fielder has blamed the cuts, which include the loss of 71 jobs at its Palmerston North factory, on cost increases.
Mr Kircher said he "really felt" for those losing their jobs.
"It is really disappointing ... when many staff have been very loyal over many years and [are] being pushed into a very uncertain position. [But] we know we have job vacancies in our food production businesses."
The factory will close in June.
In the meantime, affected staff, company managers and First Union representatives are involved in a consultation process. First Union general secretary Dennis Maga said the trade union was in daily contact with all parties.
"We are working with our members and clarifying with the company about this redundancy process."
Mr Moore said he has been working closely with Oamaru businesses to find new jobs for the employees.
"We have Milligan’s Group, Whitestone Cheese, Rainbow Confectionery and Topflite as well that are looking for processing staff.
"We are focused on [determining] the suitability of those roles for our staff."
Mr Kircher expressed his disappointment at the decision, which he has laid at the feet of the country’s major food manufacturing and retailing sectors.
Goodman Fielder New Zealand chief executive Bernard Duignan listed the cost increases he said had led to the decision.
"Like many businesses across New Zealand, we have been hit hard by significant cost increases including fuel, energy, labour and raw ingredients," Mr Duignan said.
By Jules Chin