The dairy company attempted to disance itself from Gloriavale farms by indefinitely suspending milk collection after an Employment Court decision criticised the community’s use of volunteer and child labour, but it agreed to continue taking milk until a High Court injunction sought by Canaan Farming Dairy Limited is heard in late July.
The Employment Court ruled that Gloriavale members were employees. Some who had left the group described being required to work from age 6.
A Countdown spokesperson said that as part of its commitment to upholding workers’ rights, all suppliers had to abide by a responsible sourcing policy that requires compliance with labour laws, and specifically refers to the harm caused by child labour.
“We’re working with Westland Dairy Company Ltd to understand the issues involved with this particular situation and their response.”
Countdown declined to answer further questions about whether it would continue to stock Westland Dairy’s Westgold butter, a product that proved so successful the dairy company invested $40m upgrading its Hokitika factory in order to double production.
Asked whether other supermarket chains here and overseas were raising concerns about the Gloriavale link, Westland Dairy said customers demanded the highest standards “not just from Westland, but right across our supply chain, and we engage with them on issues as they arise.”
When asked about sale of Westland Dairy products, Foodstuffs NZ head of public relations Emma Wooster said Westgold butter was still available in many of Foodstuffs’ stores, and there were no plans to remove it at this stage.
“Neither Foodstuffs North Island nor Foodstuffs South Island have commercial relationships with Gloriavale, or any of their associated businesses.”
Wooster said Foodstuffs supported legislation to prevent worker exploitation in operations and supply chains, and last year joined 100 other New Zealand companies in signing an open letter calling on the Government to launch an enquiry into a Modern Slavery Act.
Professor of ethics and sustainability leadership at AUT Marjo Lips-Wiersma said Foodstuff’s comment about commercial relationships suggested sustainable supply chain management only extended to first tier suppliers, “those they directly do business with, rather than second, third or fourth tier suppliers.”
The real risks were further often further down the chain, so if companies did not take responsibility for that, “they might as well not have any ethical supply chain policy,” said Lips-Wiersma.
“It doesn’t wash does it? It’s like us as consumers knowingly buying something that has child labour in it by arguing it’s okay because we bought it from New World.”
Silver Fern Farms said it had told Value Proteins it would not be continuing any commercial relationships.
“As our current contractual arrangements also involve other parties, there are some finer details to be determined over the next month, however we will be securing alternative arrangements.”
ANZCO Foods has given notice it will cease its ad hoc arrangements with Value Proteins, and Alliance Group said it was making alternative arrangements for “renderable material.”
