Closing: Lactalis Australia has announced the Echuca factory will be shutting down. Photo: Aidan Briggs
Photo by
Aidan Briggs
Dozens of local Lactalis Australia employees could be left without a job after the dairy company announced the closure of its Echuca factory late on Tuesday afternoon.
Hold tight - we’re checking permissions before loading more content
The news of potentially 74 jobs lost in Echuca was dropped while the company announced a three-year, $85 million investment, to make Bendigo its primary location.
“Our long-term plan to meet future growth aspirations was made after a detailed review of our Yoghurt and Desserts Division,” Lactalis’ chief executive Mal Carseldine said.
“The plan sees us have one regional hub in Victoria that is fully utilised. Our selection of which site considered; milk processing capability, operating costs and site layouts.
“Based on this criteria, our Bendigo site was the most suitable option for us to invest in to meet our future needs in Victoria.”
Australian Manufacturing Workers’ Union organiser Chris Spindler said the potential of work in Bendigo didn’t help the people concerned about feeding their family in Echuca.
Disappointed: The AMWU has said that until the announcement was made there was silence from the company. Photo: Aidan Briggs.
Photo by
Aidan Briggs
“We have very little information about what they’re proposing other than a throwaway comment about investment in Bendigo, but even that doesn’t mean much at the moment,” he said.
“We don’t know whether that results in jobs or how it impacts the people who will lose their employment.
“What sort of support are they going to be getting in terms of the future? It’s not just about the workers. It’s about their families who will now be concerned about the future.”
Although there were rumours about the future of the Echuca site, Mr Spindler said that the company was yet to be forthcoming with information.
“Rumours have been floating around for a period of time, but there’s been silence from the company, despite us asking for conversations. So we’re disappointed that that’s happened,” he said.
“It was earmarked as one of Lactalis’ most modern and comprehensive sites, so we don’t really understand how they can close down (the Echuca site) and invest millions of dollars in Bendigo.
“That doesn’t provide our members and their employees with a great hope for the future.”
Mr Carseldine said they are currently in talks with their employees about the future.
“We are now consulting with our Echuca team about these decisions, including how to best support them through the implementation,” he said.
“I am committed to genuinely listening to our team and considering their input as we work through this.
“I want to acknowledge the contribution of the Echuca team, and the decision is by no means a reflection of their efforts.”
The Nationals leader and Member for Murray Plains, Peter Walsh, says he is “devastated” by Lactalis Australia’s decision to abandon Echuca in favour of an $85 million investment in value-add technology and its supply chain – mostly in Bendigo.
Mr Walsh has confirmed he will be meeting with Mr Carseldine on Tuesday to protest the closure and ask why that expansion could not be done here in Echuca where the company has had a long and successful presence.
He said there are 74 jobs on the line and 74 families whose lives will now be turned upside down.
“Lactalis has been supported by a loyal workforce here for many years, and for this bolt out of the blue to simply write that all off is a shattering decision by the company,” Mr Walsh said.
“Why can’t this major investment be made in Echuca? Everything the company needs is as easy to implement here as it is in Bendigo.
“And yes, Lactalis says it will offer staff other opportunities within its organisation, but that means families leaving the town, and that hits schools, sporting clubs and the local economy – I just cannot see a single good thing about this decision and while I will be asking Mr Carseldine for answers I will also be hammering home that message when we meet next week.”
The union said that they are also expecting Mr Carseldine to visit the Echuca site next week and that they are hoping plans for the future will become clearer.
In the meantime, Mr Spindler said the AMWU’s focus was on the workers and how to help them through this.
"We’ll be hoping that there are opportunities, if not with Lactalis, then with someone else,” he said.
“That’s what we’ll be working on - trying to look after the workers. Unfortunately, I’m not convinced that Lactalis has the same interest.”
17°C