Among others, the meeting will include representatives from the Ministry of Social Development, Rangitata MP James Meager’s office, Multicultural Aoraki, South Canterbury Chamber of Commerce, Venture Timaru, and the Timaru District Council.
Rumour became reality for 600 Smithfield staff on Friday when Alliance announced plans to close the 139-year-old Smithfield plant by the end of the year. Alliance cited overcapacity in the industry, declining stock numbers, and the meat company’s poor financial performance.
A consultation period is in effect until October 11, and Alliance plans to make a final decision on October 18.
If that decision is to proceed with the plant closure, sheep, calf and night shift venison processing would cease immediately, and day shift venison was expected to end before the end of December.
Alliance’s general manager safety and processing Wayne Shaw said if the proposal to close the plant was confirmed, impacted staff would be offered, where possible, redeployment to other Alliance plants.
However, the company anticipated large numbers of redundancies.
"Whilst it is important we do not pre-determine the consultation period ... we must nevertheless be realistic and prepare for the worst, which is a full closure and the loss of in excess of 600 jobs."
Venture Timaru chief executive Nigel Davenport said the economic development agency had already had a number of people reaching out offering services and support.
Mr Davenport said he had worked with Infometrics principal economist Nick Brunsdon to assess the likely economic impact in the event the plant closure was confirmed.
The total number of jobs at the Smithfield plant was 607 — of those, about 180 staff finished the season in April, and the Ministry of Social Development was still working with 80.
The remaining 507 either finished for the season last week, or were on the venison line or part of the administration team.
"These 507 people potentially in the job market amount to 1.9% of all jobs in the Timaru district."
Estimates put Smithfield’s annual wage bill in the vicinity of $40-$50million.
But in addition to the direct wages bill was an estimated $16m of local products and services purchased by Smithfield in its day-to-day operations, many of which would largely be discontinued in the event of a full closure.
Those included transport support services and warehousing, metal fabrication, construction, cleaners and pest control, security, electricity transmission, and council rates and charges.
"Whilst the cascade effect of these figures is daunting, should the closure go ahead, it is important we collectively look forward.
"Of note, we are home to a diverse and well performing food processing sector who I’m sure will value the specific skills of these Smithfield workers, as I’m sure will other sectors.
"Whilst it is potentially a big number to accommodate within existing businesses, some have reached out already to express their interest, as have many other service and community organisations keen to help.
"I believe this gives cause for optimism."
