State Government makes late bid to keep Gippsland mill open

HUNDREDS of workers are bracing themselves for potential job losses after the State Government made an eleventh hour bid to keep Australia’s largest hardwood mill from closing.

Heyfield Timber Mill workers protesting outside a cabinet meeting. Picture: Chloe Smith.

HUNDREDS of workers are bracing themselves for potential unemployment after the state government made an 11th-hour bid to stop Australia’s largest hardwood mill from closing.

After months of uncertainty the long-awaited offer was handed to Australian Sustainable Hardwoods on Tuesday and will be put to the board on Thursday evening.

If the deal is not accepted, the company will be forced to close its doors in September with 260 job losses.

The Andrews Government is facing increased pressure to help save ASH with the Construction, Forestry, Mining and Energy Union urging its members to march on state parliament on Tuesday.

Protesting workers Kim Pettitt, Grant Missan, Doug McDonough, Daniel Stevens, Megan Parameshwaran and Anthony Brown. Picture: Chloe Smith.

“As far as the union is concerned we are demanding answers from the government and the premier and all of the workers will rally on Tuesday,” CFMEU forestry secretary Frank Vari said.

Committee for Gippsland CEO Mary Aldred also raised concerns the last-minute deal would not be enough, warning the offer “has to be better than where we started’’.

“If (the company) can’t get security of supply it is going to be a catastrophic event for Gippsland,’’ Ms Aldred said.

The latest move comes after months of uncertainty for workers after state logging company VicForests cut timber supply to 80,000 cubic metres from 150,000 cubic metres after contracts expire in June.

Sources fear up to 7000 jobs would be affected statewide if the Heyfield mill closes.

Gippsland East MP Tim Bull said it would be a big blow for the region.

“I am hopeful this a step toward a resolution but it needs to bring certainty for all of the employees,” Mr Bull said.

“Our region cannot afford additional job losses on the back of Hazelwood and Daniel Andrews needs to ensure this is achieved.’’

Agriculture Minister Jaala Pulford cut short her trade mission to Dubai last week to fly home to brief Cabinet on potential solutions to keep the mill open.

Despite Ms Pulford’s efforts the government requested a seven-day extension on negotiations which will expire on Friday.

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