More jobs go at Boag’s as production moves interstate

LION has made an additional 16 contractors redundant from Launceston’s Boag’s Brewery as the fallout continues from its decision to move some production interstate.

Picture; Bruce Mounster _ Boags Brewery in Launceston

LION has made an additional 16 contractors redundant from Launceston’s Boag’s Brewery as the fallout continues from its decision to move some production interstate.

Lion announced on Monday that 39 jobs — almost 40 per cent of the workforce — would be lost as the company battled against a sharp fall in Australian beer consumption.

Boag’s Brewery in Launceston.

Union secretary Janette Armstrong, of United Voice, told the Mercury yesterday that 26 administration, management and salaried staff had already been made redundant and the company was seeking 13 more volunteers.

“They have been given to February 19 to put their hand up, or if they can’t get 13, the company will choose,” Ms Armstrong said.

Lion says the jobs cuts are necessary as a result of the decision to relocate brewing of 20 million litres of Hahn, Tooheys and XXXX beers to interstate breweries.

Lion external relations director Leela Gantman said that it cost more to produce beer in Tasmania.

“There are cost differences to produce in Launceston with items such as packaging which must be taken to Tasmania and back, some raw materials and shipping of product across Bass Strait,” she said.

But Ms Gantman said the chief reason for the job losses was that the national beer market had declined and it was necessary to redistribute production for efficiency.

The interstate move came despite a $203 million extension to the Tasmanian Freight Equalisation Scheme by the Federal Government, which covered north-bound exports from Tasmania.

Lion, which is owned by Japanese brewer Kirin Holdings, spent big money on increasing production capacity at the Boag’s brewery in 2009.

Last year Lion axed 18 jobs and the latest cut means just 65 employees remain.

The brewery will brew 36 million litres a year of Boag’s brands.

Labor Deputy Leader Michelle O’Byrne said State Growth Minister Matthew Groom had failed to deliver for the North of the state.

“This company told the Government more than a year ago that it was planning to change its operations but Matthew Groom and the Coordinator General did nothing,” she said.

Bass MP Andrew Nikolic said that Lion had not asked for any assistance so it was unlikely the decision could have been changed.

“Lion have promised everyone will get their entitlements and there is also a chance of relocation in their milk and wine interests,” Mr Nikolic said.

Labor candidate for Bass Ross Hart called on Mr Nikolic to stand up for jobs.

“This most recent announcement is another hit to job and business confidence after the loss of 100 jobs from the Bradken foundry,” Mr Hart said.

The job losses come on top of others that have contributed to the unemployment rate lifting to 6.6 per cent in January.