Coronavirus Australia: Food company Bidfood accused of forced redundancies while claiming JobKeeper thousands

Unions accuse food supplier Bidfood of making hundreds forcibly redundant while receiving thousands in JobKeeper subsidies.

Unions accuse Bidfood of using the coronavirus crisis “as a cover to cut good, permanent jobs and reduce their labour bill”. Picture: Supplied

Food supplier Bidfood has been accused of making 100 workers forcibly redundant while receiving taxpayer-funded subsidies through the JobKeeper scheme.

The United Workers Union said on Thursday that Bidfood management had told officials that over 100 employees would be made redundant from close of business on Friday.

The company employs 2500 workers across the country and made $2.6 billion in revenue in 2019.

Susie Allison, the union’s food and beverage national director, said company employees had been receiving the $1500 a fortnight JobKeeper subsidy.

In conversations with the union, Ms Allison alleged Bidfood management said the forced redundancy plan was based on an “educated guess that the hospitality industry will take a while to recover and it was better for employees to be on Centrelink than to continue to be employed by the company on JobKeeper.”

But Ms Allison accused Bidfood of “turfing these workers out while the company claims thousands in government subsidies in the JobKeeper program”.

“Billion-dollar Bidfood is using this crisis as a cover to cut good, permanent jobs and reduce their labour bill,” Ms Allison said. “This is cynical opportunism at its worst”.

The union said employees had made concessions to the company including reduced hours, chopping and changing rosters and voluntarily taking annual leave.

Andrew, who has been a Bidfood employee for four years, said: “I have a mortgage, two young kids. My partner works but she's only on a contract for two more months. If I got made redundant it'd be really stressful.”

“We've done a lot to help the company. We've let the company change our shifts from night with penalties to day shift. We've taken leave without pay, annual leave. Some blokes have used their long service leave, and they've turned around and told us they'd be forcing us to take redundancies.

He said many of the workers “live week to week”. They were working night shift to support their families and already lost $200 to 300 a week moving to day shift. If they lose their job, they won’t have anything,” he said.

“We have some guys who want redundancies, but the company wants to pick and choose who gets them. I think I am in the firing line.”

While the union suggested voluntary redundancies be offered initially, Ms Allison said only one site across the country has made the offer.

The Australian has sought comment from Bidfood management.