Fonterra to Cut 80 Finance Jobs in Hamilton Amid Restructuring
Source: DairyNews.today
Fonterra, New Zealand's largest dairy cooperative, has announced that 80 finance jobs will be cut from its London St office in Hamilton's central business district as part of an ongoing restructuring effort. The cuts, confirmed by Fonterra's chief financial officer Andrew Murray, will see many roles, including some currently vacant, disestablished and outsourced to the cooperative's existing partner, Accenture, which operates offices in the Philippines and India.
The decision comes after a consultation process that began in late July, with affected staff being informed of the outcome last Friday. Murray acknowledged the impact on employees and assured that support would be provided for those affected, including opportunities to apply for new roles being created within Fonterra’s service hub. “There are new positions being created within the Fonterra service hub, now and further down the track, as we continue to develop an efficient shared-services model for Fonterra,” Murray said.
However, the mood among affected staff is one of uncertainty and frustration. One employee, speaking anonymously to the Waikato Times, described the situation as a "difficult environment" and expressed skepticism about applying for the few new positions being offered. The staff member also revealed that they and their colleagues would be responsible for training their replacements based in Manila and Bangalore, a prospect they found unsettling. "No-one can believe it’s happening," they said, noting that it was the first time they had seen outsourcing on such a large scale within the cooperative.
The decision to offshore jobs has sparked debate among those within Fonterra's network. Mathew Zonderop, Waikato sharemilker and provincial dairy chair for Federated Farmers, described the job cuts as a "brutal" but ultimately operational decision that is outside the control of farmer shareholders. "It’s a Fonterra operational issue," Zonderop stated. "Unfortunately, that’s the way the co-op works."
While acknowledging that the move aligns with the expectations of farmer shareholders who prioritize financial returns, Zonderop expressed personal disagreement with the decision to outsource jobs overseas. However, he noted that it reflects broader trends in business practices today. "It’s something we’ve got no control over anymore," he said.
Fonterra has emphasized that the decision was not taken lightly and involved consultation with farmer shareholders, recognizing the cooperative's significant role as an employer in communities across New Zealand. Despite this, the decision has raised concerns about the cooperative's commitment to supporting local jobs and the broader implications for the cooperative spirit that Fonterra has historically championed.
However, the mood among affected staff is one of uncertainty and frustration. One employee, speaking anonymously to the Waikato Times, described the situation as a "difficult environment" and expressed skepticism about applying for the few new positions being offered. The staff member also revealed that they and their colleagues would be responsible for training their replacements based in Manila and Bangalore, a prospect they found unsettling. "No-one can believe it’s happening," they said, noting that it was the first time they had seen outsourcing on such a large scale within the cooperative.
The decision to offshore jobs has sparked debate among those within Fonterra's network. Mathew Zonderop, Waikato sharemilker and provincial dairy chair for Federated Farmers, described the job cuts as a "brutal" but ultimately operational decision that is outside the control of farmer shareholders. "It’s a Fonterra operational issue," Zonderop stated. "Unfortunately, that’s the way the co-op works."
While acknowledging that the move aligns with the expectations of farmer shareholders who prioritize financial returns, Zonderop expressed personal disagreement with the decision to outsource jobs overseas. However, he noted that it reflects broader trends in business practices today. "It’s something we’ve got no control over anymore," he said.
Fonterra has emphasized that the decision was not taken lightly and involved consultation with farmer shareholders, recognizing the cooperative's significant role as an employer in communities across New Zealand. Despite this, the decision has raised concerns about the cooperative's commitment to supporting local jobs and the broader implications for the cooperative spirit that Fonterra has historically championed.
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