JOBS TO GO

CADBURY RESTRUCTURE

CHOCOLATE maker Cadbury says 50 jobs will go from its Claremont plant by the end of the year as the company moves to reduce costs through automation and new technology.

It coincides with an investment of $75 million over the next 18 months.

The job cuts, which Cadbury hopes will be voluntary redundancies, will reduce staff numbers to 400.

Parent company Mondelez International said the changes aimed to secure jobs, the company’s 95-year history in Tasmania, and “create a best-in-class manufacturing cost base”.

All redundancy conditions of employees’ workplace agreements would be met.

“Over past five years, we have invested $110 million in Tasmania, and today are announcing a further $75 million commitment to be spent over the next 18 months,” Mondelez area vice-president Amanda Banfield said.

“Our team here has worked hard to help us become more efficient, cut costs and improve our competitiveness and, as a result, we’ve reduced the cost of converting raw materials into a block of chocolate by 12 per cent.

“But while progress has been made, increasing local and global competition, low domestic growth, rising costs, and Australia’s distance from overseas markets make it difficult to compete against the likes of European factories with lower costs.

“To remain competitive, we need to improve our conversion costs by 30 per cent, plus continue to raise the bar as competition increases further.”

State Growth Minister Matthew Groom said the jobs announcement was very disappointing.

“This is obviously very difficult news for all Cadbury staff and their families,” he said.

“While I note that Cadbury has also announced a significant investment at its Claremont facility, that will be cold comfort for staff.”

Australian Manufacturing Workers’ Union secretary John Short said the union was deeply disappointed at the job losses.

“It is another example of a greedy multinational which does not care about the local economy and the people it is affecting,” Mr Short said.

“Cadbury workers have made significant improvements to productivity and profitability.

“‘They are saying they are overworked and that there is more workplace stress.”

Mr Short said 80 jobs were cut in 2015 and 20 shortly before that. “I wouldn’t be surprised if 150 jobs have gone — which is about one third of the workforce gone in three years,” he said.

Mr Short said Cadbury was getting rid of people before making the investment and he wasn’t sure whether it would be sustainable.

“Normally they bring in the new machines and get up and running and then try and get rid of people,” he said.

Shadow treasurer Scott Bacon said it was terrible news that while Cadbury was announcing new investment,

While progress has been made, increasing local and global competition, low domestic growth, rising costs, and Australia’s distance from overseas markets make it difficult to compete Mondelez area vice-president Amanda Banfield

redundancies were being considered.

“Cadbury workers are under a lot of pressure and I urge the Hodgman Government to investigate the situation and do everything in its power to protect local jobs,” he said.

Denison independent MHR Andrew Wilkie said the sacking of another 50 workers would hit the Glenorchy community hard.

“Many people are already doing it tough and the unemployment rate is particularly high,” he said. “While this deci- sion was obviously Mondelez’s to make, it is a reminder of the need for economic stimulus in the Glenorchy area and a bitter reminder of the $16 million that the Federal Government promised prior to the 2013 election, which ended up nothing more than a slush fund for projects in Bass, Braddon and Lyons.”

Cadbury manufacturing director of chocolate Jason Bonisoli said the efficiency improvements already achieved had given strong confidence that the operation could have a best-in-class cost-base.

“The team here has helped us deliver significant waste and cost reductions, safety improvements, and they are learning new skills and reporting increased levels of engagement,” he said.

“But we want to keep making great tasting, affordable products here in Tasmania, and the changes we have announced today will create scale and drive costs down to position us to compete for export volume and secure local jobs and the future of manufacturing in Tasmania.

“The changes will help sustain Cadbury’s position as market leader, innovating and making new products.”

Mr Bonisoli said the company aimed to increase the skills and capabilities of its people and ensure its teams were the right size.