Timber workers urge government to prevent economic catastrophe

Unions say Victoria’s timber workers need a JobKeeper-style payment to keep the industry alive as hundreds of workers are stood down amid crippling shortages.

Victoria’s timber workers have warned they are on their knees as hundreds of people in sawmills and harvesting are stood down amid crippling shortages.

A supply crunch on softwood is also contributing to the rising costs of building homes across the state and Australia.

Advocates have called on the Andrews government to adopt a new JobKeeper style payment to keep the hardwood industry alive and prevent economic catastrophe in the regions.

Unions have warned hundreds of people at sawmills across the state are not working and more about to be about stood down.

They also estimate a quarter of the contracting workforce for harvesting has work, with many missing out for months.

Industry figures have blamed a dire hardwood shortage made worse by legal battles with green groups that have stopped work.

Unions have warned hundreds of people at sawmills across the state are not working and more about to be about stood down. Picture: Zoe Phillips

Last week, the Mectec sawmill closed in East Gippsland amid warnings the shutdown was just “the tip of the iceberg”.

Victoria will ban native logging by 2030 but environmental groups have been taking VicForests and other bodies to court to shut down coupes ahead of time.

Victoria is most reliant on imports needed for house construction, with many builders going under amid surging costs of materials. Picture: Zoe Phillips

The CFMEU’s national secretary Michael O’Connor, whose union represents the timber workers, said the state had a “moral obligation” to act for workers

“Victorian government inaction for two years on the injunctions that closed down operations has led to this situation.

“An increase in third party litigations in forestry operations has impacted timber supply, leading to hardwood shortages, and the slowing down and even closing of production at mills.”
Mr O’Connor said the closure of the Mectec mill was “the tip of the iceberg”.

“We need a JobKeeper for timber workers or more businesses will close.

“The union has made a number of representations to the government and hopes to have a response shortly.

A government spokeswoman said it was a challenging time for timber businesses.

“We will continue to support industry and the community as we implement the Victorian Forestry Plan,” she said.

“Any timber mill workers impacted by closures will be supported by our Forestry Transition team.”

Nationals Leader Peter Walsh said the Coalition would scrap the nativelogging ban if elected.

“Labor has started dismantling our timber industry as part of its politically-motivated vendetta against hardworking Victorians in regional and rural areas,” Mr Walsh says.

“Today we have seen our worst fears being confirmed, with the first casualty being a sawmill in a smaller community.

“Communities such as Newmerella rely on Victoria’s $7.3bn native timber industry to put food on the table and keep the lights on.

“But again we see Labor abandoning regional Victorians to pander to the Greens and their inner-city voters.”

A new report by the Forest and Wood Products Australia also shows the state leads the nation for importing softwood, leaving it vulnerable to international supply chains.

Victoria is most reliant on imports needed for house construction, with many builders going under amid surging costs of materials.

Deb Kerr, chief executive of the Victorian Forest Products Association, said the government needed to prioritise investment into tackling this problem.

“We already are not growing enough timber for our own needs,” she said.

“Governments have been asleep at the wheel for decades, with a stagnant plantation estate and, more recently, the winding down of our sustainable, renewable, and responsible native timber industry here in Victoria.”

The state government argued it was doing enough to support impacted workers, noting it had committed $200 million to support businesses transition away from the native timber industry.

Minister for Sport, Tourism and Major Events Steve Dimopoulos said on Saturday: “We have enormous sympathy with workers and families who are impacted by that industry, which in some respects is declining”.

“We have an enormous amount of work that is going on through our government agencies to support that workforce and transition them to a more sustainable workforce and sustainable raw materials framework.”