Fonterra Rationalisation Inevitable

Published: Thu 28 Nov 2002 10:11 PM
Fonterra Rationalisation Inevitable
Fonterra's recently announced plan to restructure its Wellington office was inevitable according to Dairy Farmers of New Zealand Chairman Kevin Wooding.
Fonterra have announced that the majority of its Wellington based staff will be relocated to Auckland, Palmerston North and Hamilton and up to 200 positions could ultimately become redundant.
"These changes were promised as part of the $120 million in savings that could be achieved as part of the merger and will be welcomed by dairy farmers facing a significant reduction in their payout," said Mr Wooding.
"The sad part of any restructure is the impact on people and I feel for those loyal staff members who are facing redundancy. Questions are now being raised about whether Fonterra has been over-zealous, which will turn to outrage if the positions need to be refilled at a later stage.
"The outcry from Wellington Mayor Kerry Prendergast about the restructure has reinforced the importance of the dairy industry to Wellington and indeed New Zealand. However the reality is the Wellington office will grow again if the business is successful in the long term.
"My main concern is that Fonterra does not spend large amounts of money gained from efficiencies on new buildings or re-employing staff it has made redundant."

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