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Fonterra plans to cut jobs at its Waikato head office.
photo: RNZ/Cole Eastham-Farrelly
Dairy giant Fonterra plans to cut jobs at its Waikato head office as it outsources its workforce overseas.
Last week, finance staff at the Hamilton Central Office were informed of the proposed changes as part of a review of the dairy co-op’s operating model.
The company’s incoming chief financial officer, Andrew Murray, said proposed changes to financial operations include outsourcing work to India and the Philippines.
“(It) includes elements of co-sourcing transactional work with existing partners who have facilities in Bengaluru and Manila,” Murray said.
“These changes … relate to us optimizing core operating efficiencies to support the entire business.”
He said the proposed changes were designed to create financial value for farmer-shareholders.
Waikato United Farmers Dairy Association president Matthew Zonderop said he understood farmer shareholders’ desire to put money back in their pockets.
“But ultimately, there are smarter ways than to outsource these jobs overseas,” he said.
He said New Zealand co-operatives should provide support for local staff.
“We should keep this money in New Zealand. I mean, this company is New Zealand built, New Zealand made.”
He questioned why the co-op would outsource operations to staff outside New Zealand – especially given the new technology available.
“There’s a lot of technology out there now that can keep those jobs in New Zealand. If it’s just accounting, you can do it with AI, Microsoft Co-Pilot Chat, GDP.”
In addition, 51 jobs at the region’s Waitoa and Te Rapa plants later this year will also be affected by the closure of four plants in October – although some positions will be redeployed and some are already vacant.
Consultation on the proposal will end on Friday.
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