Wilmar Sugar announces redundancies at its North Queensland mills

Wilmar Sugar and Renewables has announced redundancies in what one employee has described as a “killer blow” in the lead up to Christmas.

Wilmar Sugar and Renewables says that after “careful consideration” the multinational had “implemented organisational changes to ensure our structure and workforce reflect current business needs”. Picture: Supplied

Wilmar Sugar and Renewables has announced redundancies in what one employee has described as a “killer blow” in the lead up to Christmas.

The source, employed at one of Wilmar’s eight sugar mills that operate primarily in North Queensland, said the redundancies involving salaried jobs are part of the company’s drive to save $50 million from its operations budget.

A company spokesperson said that after “careful consideration” the multinational had “implemented organisational changes to ensure our structure and workforce reflect current business needs”.

“These changes have been necessary to improve alignment with our business objectives and ensure the sustainability of our cost base in the current operating environment,” they said.

“Where roles have been made redundant, we have explored potential redeployment of employees within the business.”

Wilmar Sugar and Renewables Invicta Mill in the Burdekin. Picture: Supplied

The Wilmar spokesperson said it was unfortunate that it was “unable to find suitable redeployment opportunities in all cases and as a result, a small number of employees are leaving the business”.

“We continue to prioritise safety, operational and financial performance, and are now focused on positioning the business strongly for the production season ahead.”

Three people have been injured after a Wilmar Sugar and Renewables cane train locomotive derailed and rolled in an accident at Victoria Plantation between Victoria Mill and Bemerside in the Herbert River District on Monday. More than a dozen fully laden cane bins were also derailed, with a number tipping. Picture: Cameron Bates

A Wilmar source said the cuts equated to less than one per cent of the company’s approximately 2000 employees.

The employee doubted that figure, calling it “bollox”.

“That’s not going to save them $50 million,” he said.

“This is a kick in the guts to families ahead of Christmas and it will have devastating consequences; people will have to look for work and will end up leaving their home towns across North Queensland.”

The source said Wilmar had called for voluntary redundancies near the beginning of November, followed by an announcement that it was axing jobs about two weeks ago.

“It’s going to have a detrimental impact on local communities.”

Wilmar Sugar and Renewables Invicta Mill in the Burdekin. Picture: Supplied

Waged Wilmar Sugar employees in Australia secured upfront bonuses of $2500 and 16 per cent wage rises following strikes in 2024.

Sugar prices are currently showing a declining trend globally, falling 27 per cent over the past year.

In addition to the ongoing crushing seasons in Thailand and India, factors for the decline include a larger-than-expected sugar production in Brazil and the weakening of the Brazilian Real against the US dollar.

Originally published as Wilmar Sugar announces redundancies at its North Queensland mills