News 
 State News 
 Agribusiness and General 
 Finance 
 146 jobs lost as Heinz closes sauce factory 

146 jobs lost as Heinz closes sauce factory

03 Jan, 2012 06:31 AM
HEINZ is set to close its tomato sauce factory in northern Victoria on Friday with the loss of 146 jobs.

Worker Chris Lloyd, who has been at the Heinz plant for 18 years at Girgarre, a small town in the Goulburn Valley, said workers started receiving their notices at Christmas and in the lead-up to the new year.

''We shut up shop on January 6; it's the last working day,'' Mr Lloyd said, when all but 17 employees leave at the end of the night shift. The remaining few will dispatch the last of the inventory and wind down the factory.

After the last of the Girgarre factory's stock is sold from store shelves, there will be no more Heinz tomato sauce or ketchup made in Australia. Heinz is shifting production to New Zealand.

''Heinz are flying under the radar and are just going to snake out of the country and leave all us people in limbo - with no jobs, young families and huge debts,'' Mr Lloyd said.

While he knew the closure had been foreshadowed last May, he said a clause in the redundancy agreement, which required him to work to the very end or lose his payout, meant he had to forgo other employment opportunities while the factory soldiered on in its final months.

Heinz Australia's spokeswoman Jessica Ramsden defended the way the company had handled the closure. ''A decision to close down a site like this is a very, very difficult one - it impacts the workers and the wider community,'' she said.

Ms Ramsden said the company contemplated what would need to be done to save the plant, but the small scale of the operation meant it was uneconomical to do so.

''It simply came down to the fact that the investment required to make it competitive was too great,'' she said.

But Mr Lloyd, who worked on the bottle line, said Heinz had missed the opportunity to modernise and innovate at the factory, which makes about eight tonnes of sauce an hour from local fruit.

''They never injected any money in the plant in the last 10 years; it's always just been a Band-Aid,'' he said. ''It could have been a state-of-the-art factory - and we're not.''

Australian Manufacturing Workers Union organiser Jason Hefford said the company had told workers on December 17 that it was entering its final four weeks of production, but had met its obligations regarding redundancy packages.

Ms Ramsden said staff were given outplacement support including financial counselling, resume“ writing refreshers, redundancy deals, and 10 staff were awarded $10,000 scholarships at Goulburn Ovens TAFE to attain qualifications in fields such as nursing, teaching, aged care and childcare services.

The company was also donating nine hectares of land to the Girgarre Development Committee to be used for community purposes, including expanding the farmers' market and for affordable housing projects, Ms Ramsden said.

The New Zealand-processed sauce would contain tomato pastes sourced globally, mainly from California and Portugal.

The factory closure means Australia, which once had six tomato sauce factories, now has one, Cedenco, at Echuca, which has taken on former Heinz growers' contracts, Mr Hefford said.

Heinz still employs 1100 people at other Australian plants.

The factory site would be sold after equipment was removed, Ms Ramsden said.

Print
Increase Text Size
Decrease Text Size

comments


Date: Newest first | Oldest first
Very sad, but an example of "destructive creativity" at work, a process that has served us well for centuries, but may be looking a bit shabby in some respects in recent times. However, the answer is definitely not a swing back to actual and artificial protection devices. That would be a real disaster for everyone except the rent seekers.
Posted by Bushie Bill, 3/01/2012 2:54:45 PM, on Stock & Land
Why no mention of the Goulburn Valley Food Action Committee which has been working for months to buy the factory and keep jobs in the community? The Action Committee was considering the possibility of forming a co-operative. This is a very important context to such a disappointing outcome.
Posted by David Griffiths, 4/01/2012 7:38:14 AM, on Stock & Land
No sympathy for these workers from the landed gentry? No? And why am I not surprised? Although, how can the great unabashed Gillard-haters not jump at the chance to blame her?
Posted by Bushie Bill, 4/01/2012 6:29:45 PM, on Stock & Land
You are still standing alone, Heinzers; no sign of any support or even sympathy from any of the upstanding "backbone of the Earth" types that are frequently telling us how they are unloved and unappreciated toilers feeding the world, with no ambitions other than to go to bed at night knowing there are less hungry people in the world.
Posted by Bushie Bill, 6/01/2012 2:56:06 PM, on Stock & Land
No sympathy from you either Bill you think its a good thing . It will set your consumer dollar free and thats all that matters .
Posted by THE FARMER, 9/01/2012 10:00:49 AM, on Stock & Land
How do yo know what I think, Farmboy? You're a mind reader now?
Posted by Bushie Bill, 9/01/2012 10:42:41 PM, on Stock & Land
Your past record Bill no care for the dairy industry none for the apple industry and none for the producers of those tomatoes.

What effects producers will effect workers on the processing side. While you rant about the consumer right to the cheapest anything known to man and rile about inefficient farmers workers in the fruit & vege industry quietly fade away.

Posted by THE FARMER, 10/01/2012 10:01:40 AM, on Stock & Land
My point in this thread Farmboy is the callous disregard for the troubles of others by farmers whilst they do any overly-dramatic song and dance roiutine about their own trials and tribulations. It is the hypocrisy I draw attention to, but that has not seemingly registered in your brain.
Posted by Bushie Bill, 10/01/2012 7:09:49 PM, on Stock & Land
So when its your callous disregard of people in the dairy or apple industries it dont matter as long as you get your $1 a litre milk or Chinese apples.

What is happening to the workers is also happening to the growers of the tomatoes. Towns die when things like this happen.

Posted by THE FARMER, 11/01/2012 9:33:54 AM, on Stock & Land
Towns are dying all the time. Our economy and society are dynamic, Do you actually know that I am talking about? I doubt it. We live with a system of destructive creativity, and have done since Adam Smith et al sorted us out some centuries ago. Your forebears were happy with the system whilst they were "upwardly mobile" i.e. while they were trying to milk more out of it. Now you want no change so that your position is protected. That is usually called hypocrisy. If you are still too thick to know what I am saying, simply read my post to remove the self-serving confusion you are spewing out.
Posted by Bushie Bill, 12/01/2012 10:26:18 PM, on Stock & Land

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.

Most popular articles

Advertisement



Stock & Land







Weather brought to you by:

Weatherzone

Classifieds

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
 SAVE...
 SHARE...