Saputo factory closures: United Workers Union calls for clarity

Saputo’s top brass are eyeing Australian factory closures, with growing concern over which factories are in the firing line.

Trade unionists have labelled Saputo’s threatened factory closures a “slap in the face” to Australian workers.

The processor’s Montreal-based management has flagged “network optimisation” in Australia, although they are yet to spell out which factories are likely to shut up shop.

United Workers Union dairy co-ordinator Neil Smith said company supremo Lino Saputo Jr needed to provide clarity over the future employment of its Australian workers.

In a speech to Canadian investors last month, Mr Saputo said the processor intended to downsize from 11 to five factories in Australia but did not stipulate which sites were earmarked for closure.

“It is a slap in the face to Saputo’s workers and their communities to learn about dairy closures from the media instead of directly from the company,” Mr Smith said.

“This decision isn’t just about closing plants; it’s about the future of our regional towns.”

“It’s hard to accept Saputo Australia’s claims of ignorance, while also refusing to rule out closures, while at the same time the Saputo chief executive, the actual decision-maker, is lobbing threats from Canada.”

A spokeswoman for Saputo said: “At this time, beyond the previously announced SDA network optimisation activities, no decisions have been made regarding its manufacturing footprint.”

Australian Dairy Farmers president Rick Gladigau echoed the UWU’s concerns, pointing to little correspondence offered by the Canadian company.

“(We are) naturally concerned when any processor indicates it intends to shrink its presence in the milk processing space,” Mr Gladigau said.

“We do recognise declining milk production leaves processors with excess processing capacity – which is why we want a competitive domestic market.

“It is not surprising that milk production is declining. Years of price pressure, kickstarted by retailers reducing milk prices to $1/litre in 2011, led many farmers to exit the industry.”

Saputo’s Maffra factory before its closure Picture: Zoe Phillips

Last year, more than 70 people lost their jobs in Maffra when Saputo made sweeping cuts to its Gippsland operations.

Wellington Shire mayor Ian Bye condemned the timing and Saputo’s handling of the closure.

Mr Gladigau said processors such as Saputo could afford to pay farmers fairly while simultaneously making a strong profit themselves.

“In recent seasons when they’ve paid farmers sustainable prices in the face of cheap imports, some processors continue to report healthy profits,” he said.

“We hope processors are committed to the Australian dairy industry and its producers. We trust they will operate their businesses in a manner which doesn’t jeopardise farmers or their employees.”