Wairoa braced for job cut fallout

Wairoa business owners are braced for the fallout after the jobs of up to 200 meatworkers at the town's Affco plant were axed three months earlier than expected.

Seventy sheep chain workers were laid off last week. Yesterday another 130 on the chains were told it was their last day.

The plant usually closes in August-September for four to six weeks.

Write Price supermarket owner Trevor Wong said it would affect every business in the town, 100km south of Gisborne, and many families.

"This town relies on Affco. It will affect a lot of families who have got rent and mortgages to pay. That is a lot of people who have got less money to spend -- it is going to affect everybody in the town."

Wairoa District Council chief executive Peter Freeman said the longer layoff would clearly impact on the economy.

"We are not sure how much. This lay-off is a lot longer than normal. It is going to have a detrimental effect on the town," he said.

Slaughterman Steve Brady, who has worked at the plant for 29 years, told The Dominion Post newspaper an ultimatum had been put to workers individually, telling them they could stay on if they agreed to work faster and without overtime pay.

They were told they could be out of work for up to five months if they did not agree.

The father-of-three said the season had not finished this early for many years.

"It will be the first time since '92 that I've signed up for the benefit," he said.

"I'm preparing for the worst. It's very disappointing. The morale is very low at the plant."

Affco's beef chain employed about 100 workers and was still operating.

Wairoa Mayor Les Probert said he understood the lack of stock was behind the early closure of the sheep chain.

"Now we have had good rain, there is plenty of feed.

"The ewes are in good order, scanning results are showing it should be a good lambing, so on the positive side hopefully the works will open early and we can look forward to a better season next year."

The works were an integral part of Wairoa, employing 700 at its peak.

Mr Probert had spoken to Winz staff in Wairoa.

They were willing to run courses for people out of work once they had a clearer idea of the numbers of unemployed.

The Meatworkers' Union and the company are heading to the Employment Relations Authority this month after the company allegedly breached its agreement with staff in Wairoa.

Meatworkers' Union spokesman Eric Mischefski said the ultimatum given to the workers was a breach of the workers' contract and the company had approached individual staff in an unlawful manner.

Affco general manager Rowan Ogg would not comment on this issue because the matter was between management and staff.