A UNION has vowed to help workers who will lose their jobs over the closure of Saputo’s Maffra factory.

The United Workers Union has spoken out after Saputo announced job cuts to factories in Maffra, Leongatha and Mil-Lel, saying it is a tragedy for their local communities, and pledged support for the workers affected.

“The dairy industry is the lifeblood of regional communities. But it is an industry in crisis,” United Workers Union Dairy co-ordinator Neil Smith said.

“Floods and fires caused by climate change and downward pressure from supermarkets has devastated the capacity and motivation for Australian dairy farmers to produce milk. This reduction in milk supply had already negatively affected Maffra, who has been operating at only 25 per cent capacity, and now is sadly closing. Until action is taken, shutdowns and further job losses will continue.

“United Workers Union has a plan for the dairy industry. Thousands of workers have endorsed a plan that will make sure the industry has a long and sustainable future which provides good, secure jobs for regional workers. We will be working with our members at Leongatha and Maffra to make sure they get the best possible outcome during this difficult time.

“Where possible, we want to make sure those workers who want to be redeployed at another Saputo factory are able to do so, and that there’s a fair process when it comes to selecting those who will receive a redundancy.”

As well as permanently closing the Maffra factory early next year, the company’s bulk powders production section of its factory at Leongatha will be cut back, and a cheese-packaging area at Mil-Lel in South Australia closed.

About 75 workers will be affected.

In a statement, Saputo Dairy Australia said that after “careful consideration of all affected stakeholders”, the Canadian company was “undertaking further consolidation initiatives intended to enhance its operational efficiency and strengthen its competitiveness”.

“As part of the Optimize and Enhance Operations pillar of Saputo Inc.’s Global Strategic Plan, these initiatives include the intention to permanently close its Maffra, Victoria, facility,” the statement, released last Wednesday, read.

President and chief operating officer (International and Europe) of Saputo Inc, Leanne Cutts, said the changes were aimed at improving efficiency and competitiveness.

“While a very difficult decision to make, today’s announcement continues our journey towards long-term success for our business in Australia by increasing our efficiency and productivity, and making our business more competitive,” Ms Cutts said.

In March, one of two dryers at the Maffra plant closed, causing 18 voluntary redundancies.

Member for Gippsland South and Nationals frontbencher, Danny O’Brien, expressed his disappointment at the closure.

“The announcement of the job losses at the Leongatha factory and the closure of Maffra is very disappointing news for our region and our thoughts are with the staff who will lose their jobs,” he said.

“I hope that as many as possible can be redeployed internally and continue to put food on the table for their families. It is never easy to lose jobs in any of our communities, but it’s also true that there are a lot of jobs around at the moment so I am optimistic that anyone made redundant will find work elsewhere.

“We continue to face an uncertain time in the dairy industry, and I hope that the good recent seasons and better prices will encourage farmers to stick with an industry that is important to our local economy.”

Labor candidate for Gippsland South, Denise Ryan, who lives on a dairy farm in Denison and is a former member of the United Dairy Farmers Board, said she believes that many years of under investment had led to the current situation.

“The high-end products are being produced from Leongatha, so it was part of the business plan that the Maffra plant was to produce lower-yielding dried milk. Demand for the product has dropped,” she said.

“It will be interesting to see what the company intends to do with the factory. I know that Maffra people and other farmers will be very concerned.”

Member for Gippsland East, Tim Bull, also released a statement on the closure.

“Although not completely unexpected, it was less than ideal not to have forewarning of this announcement, and I look forward to discussions with Saputo and those affected on what supports they will be providing to the workers who must now find alternate employment,” Mr Bull said.

“While these decisions are never good, it is worth noting this has occurred in a period where we have workforce shortages across other sectors and industries that I am hopeful those impacted can transition to.

“I am also planning to discuss the future of the site and new industry opportunities with Saputo and agencies like Wellington Shire Council, should I be re-elected later this month.”