Fonterra proposes job cuts, outsourcing labour from overseas

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Fonterra is proposing job cuts at its Waikato headquarters.
Photo: RNZ / Cole Eastham-Farrelly

Dairy giant Fonterra is proposing cutting jobs at its Waikato headquarters as it outsources labour to overseas.

Last week, finance staff at the central Hamilton office were informed about proposed changes as part of an operating model review for the dairy co-operative.

Its incoming chief finance officer Andrew Murray said part of the proposed changes to finance operations included outsourcing work to India and the Philippines.

“[It] includes co-sourcing elements of our transactional work with an existing partner who has facilities in Bangalore and Manila,” Murray said.

“The changes… relate to us optimising core operational efficiency to support the entire business.”

He said the proposed changes aimed to create financial value for its farmer shareholders.

Waikato Federated Farmers dairy chairperson Matthew Zonderop said he understood the desire to put money back into pockets of their farmer-shareholders.

“But at the end of the day, there’s a smarter way to do that than outsourcing those jobs offshore,” he said.

He said the New Zealand co-operative should support staff locally.

“We should be keeping that money in New Zealand. I mean that’s what this company is; it’s New Zealand-built, New Zealand-made.”

He questioned why the co-operative would outsource to staff outside of New Zealand – especially considering new technologies that were available.

“There’s plenty of technology available now to be able to keep those jobs in New Zealand. If it’s just accounting, you can do that with AI, Microsoft Co-pilot chat, GDP.”

Furthermore, later in the year, 51 roles at the region’s Waitoa and Te Rapa sites will also be impacted by the closure of four plants from October – though some will be redeployed and some are already vacant.

Consultation on the proposals ends on Friday.