Lion to shed 39 jobs at Boag’s Brewery in Launceston in major beer production shake-up

THE axing of 39 jobs as part of a major shake-up of the Boag’s Brewery operation in Launceston has been described as a huge blow by Tasmania’s peak union body.

Beer taps at the historic Boag's Brewery museum in Launceston. PicMike/Smith buildings interior history Tas beer tap signs D...

THE axing of 39 jobs as part of a major shake-up of the Boag’s Brewery operation in Launceston has been described as a huge blow by Tasmania’s peak union body.

Lion, the international company now responsible for the iconic Boag’s beer, has announced it will move about 20 million litres of annual brewing volume from the Launceston brewery to the mainland “to improve the efficiency of its brewery network”.

While it claims the change will not affect any Boag’s beers, it says 39 positions will be made redundant.

The changes were announced earlier today by Lion Beer, Spirits and Wine Australia managing director James Brindley.

Jannette Armstrong, the Tasmanian Branch Secretary of United Voice, said the latest job cuts followed last year’s axing of casual workers’ jobs at the site.

“The loss of these jobs is a huge blow not only for the 39 people who will lose their jobs but for their families, the Launceston community and all Tasmania,” she said.

“The impact of these job losses will be felt across the state, where 6.6 per cent unemployment continues to be worse than the national average of 5.8 per cent.”

“It is imperative that the Tasmanian Government works with business and workers to ensure jobs and contracts remain in the state because Tasmania cannot afford to keep losing jobs to the mainland.”

Ms Armstrong said United Voice would also seek answers from Lion about the future of brewery expansion plans released in late 2013, which included a new visitor centre.

Lion Beer Spirits and Wine Australia MD James Brindley at Little Creatures in Geelong.

Detailing the company’s plans in a statement, Mr Brindley said: “This is not something we have taken lightly and is no reflection on the dedication and capability of our people at the Boag’s Brewery or the importance of the Tasmanian market to our business.”

He said the Boag’s Brewery was traditionally focused on Boag’s beers. But after Lion acquired the business in 2007, various national brands were produced in Launceston for export to the mainland.

“This change will essentially return the Boag’s Brewery to its traditional focus on the Boag’s portfolio of Tasmanian beers, which is still a very substantial 36 million litres,” Mr Brindley said.

“We have capacity in our national network and the Boag’s Brewery in its current format is also under-utilised.

“This change will allow us to reconfigure the Boag’s Brewery to a size more appropriate for the Boag’s portfolio, significantly improving efficiency.”

The State Government described Lion’s move as “very disappointing”.

State Growth Minister Matthew Groom said while the company had not requested assistance, the Government had ensured the Department of State Growth’s Skills Response Unit was available to help workers.

He gave no further indication of whether any other help would be forthcoming.

“Jobs are the number one priority of the Hodgman Liberal Government and our thoughts go out to those workers and their families affected by this decision,” the Minister said.

“Lion’s decision is disappointing, but it is important to note that it has occurred against a trend of strong jobs growth in Tasmania — including in the North.

Lion said the transition was expected to be completed by the end of September 2016. The exact timing and process, however, would be confirmed following further consultation.

Lion would continue to source malt, yeast and Tasmanian Super Pride hops used to craft Boag’s beers from local suppliers and the Boag’s Centre for Beer Lovers would continue to operate, the company said.