Federal Member for Gippsland Darren Chester says employees at a Yarram sawmill are owed an explanation from senior management after losing their jobs without warning.
Mr Chester said the loss of more than 70 direct jobs was devastating for the community, with the flow-on impact likely to result in economic hardship for dozens of families.
“Without any warning, the workers at AKD sawmill in Yarram were told their jobs are gone, less than six weeks from Christmas,” Mr Chester said.
“The workers and our community deserve a better explanation than a short media release from the company, which claims a downturn in the housing sector has led to the closure.
“I have requested a meeting with senior executives who didn’t even bother to contact me prior to making today’s announcement.”
According to the AKD statement:
“Today, we have informed employees at our Yarram sawmill that the site will be closed before the end of November, with production stopping from today.
“This difficult decision is a result of the challenging market conditions that AKD continues to face, driven by the sustained slowdown in housing construction in Australia.
“Broader economic conditions are also contributing to the uncertainty in our industry, with demand remaining soft for both structural and non-structural softwood timber products.”
Mr Chester said he wanted to know what other options were considered instead of a full closure and would be seeking a guarantee that employees would receive their full entitlements.
