Major job loss fears at Maryvale paper mill ahead of Christmas

There are major Christmas job loss fears at a Victorian paper mill which is set to suspend production of a key line.

There are Christmas job fears at the Maryvale paper mill.

UP TO 200 workers at the Latrobe Valley’s biggest employer fear they are about to lose their jobs going into Christmas, amid claims stand downs linked to timber shortages will become permanent.

The Opal Australian Paper mill at Maryvale will suspend white paper production this week as legal hurdles on native logging make it almost impossible to source timber for these products.

The company is the nation’s only manufacturer of A4 copy paper but has almost completely exhausted timber stockpiles it has used to keep production running.

Recent court cases have put new restrictions on native harvesting in the region and VicForests, the mill’s key supplier of this timber, has been struggling to source enough supply under these regulations.

Up to 200 jobs could be lost at the Maryvale paper mill, a key union warns.

While the state government said it has received assurances there would be no job losses before Christmas, CFMEU national secretary Michael O’Connor has sounded the alarm and said jobs are about to be lost.

“Opal management are in negotiations with the Vic State government to turn proposed 200 stand downs into 200 permanent redundancies,” he wrote on social media.

“That’s the so called transition plan.

“A disaster for the Latrobe Valley which the union warned the government about for the last 2 years.”

The state government has previously announced it will ban all native logging by the end of the decade, pledging to help the industry transition to use of plantations.

Workers have begun protesting at the Maryvale paper mill in an urgent bid to save their jobs.

The union has also warned that Australia will soon become fully reliant on imports for white paper if urgent action is not taken.

Legal hurdles on native logging are hindering the Maryvale mill’s operation.

A spokeswoman for Opal Australian Paper said they continued to investigate alternative wood supplies.

“This is complex and to be viable the alternative supplies must match a range of strict criteria including species, availability, volume, cost, logistics and long-term supply,” she said.

“While we pursue substitute wood supply possibilities, this difficult situation means as a consequence, white paper production is expected to be impacted on or around 23 December.

“There are currently no stand downs in place, however it is anticipated there will be temporary stand downs for a number of work groups in coming weeks.”

The spokeswoman said Opal was considering a reduction or closure of white paper production at the mill given the supply issues, an outcome that would result in job losses.

“This is a complex and ever-changing situation and no longer term decisions on operational changes have been made at this stage,” she said.

“We appreciate this is a very difficult and unsettling time and we remain committed to keeping our team members and key stakeholders updated on the situation as it develops.”