Category: Manufacturing and food

E tū bitterly disappointed over demise of Kiwi-made Cadbury

The union, E tū is highly critical of the decision by Mondelez International to move all production of Cadbury products from its Dunedin production plant to Australia.

E tū’s Director of Industries, Neville Donaldson says the decision will be bitterly disappointing for the more than 300 Dunedin workers who will lose their jobs.

“Mondelez has shown no compunction about closing a very profitable factory in Dunedin at the cost of quality, full-time jobs for New Zealand workers,” says Neville.

“There are companies which would have given their right arm to be able to run the Cadbury factory and enjoy the profits it was making when the decision was made to close, he says.

Mondelez had said some local production of iconic kiwi brands might continue if it found a suitable manufacturer, but today said that wasn’t possible.

However, Neville says the union is sceptical about whether Mondelez ever intended to find an alternative local manufacturer.

“We do question whether there was a genuine effort to keep that work here.  What was that exercise really about? Was it about trying to keep 10 percent of that production in New Zealand – or was it really about brand-protection and easing public anger over this closure?

“We had hoped for better, but it’s no surprise things have turned out as they have, given Mondelez’s record overseas,” says Neville.

Neville says New Zealand consumers might now want to consider where they spend their money when it comes to a sweet treat.

“The question is, will they support Mondelez moving its operation overseas at the cost of Kiwi jobs, or should they buy Kiwi-made products and support jobs for Kiwi workers?”

Neville says Dunedin has lost more than 800 full-time, well-paid manufacturing jobs in recent years with the closure of the Hillside Railway workshops, Fisher and Paykel, Sealord and now Cadbury.

ENDS

For more information, contact:

Neville Donaldson E tū Director of Industries ph. 027 543 5312

E tū extremely disappointed with MBIE report on cheap Chinese steel

E tū is extremely disappointed with a report which has found there is little evidence of steel dumping in New Zealand by China.

The report details the findings of an enquiry by the Ministry of Business, Innovation and Employment into a complaint by NZ Steel that imported Chinese galvanised steel coil is subsidised, making it hard for New Zealand steel producers to compete.

The report found no evidence of anything more than “minimal” subsidies, with the government announcing it won’t act on the complaint.

E tū Industry Coordinator, Joe Gallagher says there are serious questions about the rigour of the research underpinning the report.

“Only one Chinese manufacturer responded to questions from the enquiry about subsidies. The Chinese government barely responded either, claiming its steel producers wouldn’t cooperate.

“MBIE admits its findings rest on “very limited information”, their words – then tells us that “on that basis”, it concludes that the Chinese subsidies are minimal.

“This isn’t just disappointing. It’s frightening that the livelihoods of entire communities rest on this poor-quality enquiry and report which shrugs off the failure of key players to answer questions at the heart of the NZ Steel’s complaint.”

Joe says the government’s refusal to act is also “a further kick in the guts” for local steel producers who also face pressure from Emissions Trading Scheme charges and the threat of big price hikes by power industry lines companies.

“There is clear evidence of an over-supply of steel coming in from China at below market prices,” says Joe.

“There are no proper quality checks in China to make sure this steel is of the proper standard, such as are required of NZ Steel, and equally, there are no tariffs on these products.

“It’s not a level playing field,” he says.

ENDS

For further information, contact:

Joe Gallagher E tū Industry Coordinator ph. 027 591 0015.