Seven jobs to go in Cobram
Seven jobs will be lost in Cobram as Murray Goulburn makes 73 positions redundant across its Victorian factories.
In addition to Cobram, 52 jobs will go at Leongatha, nine from Koroit and five from Maffra.
The embattled dairy cooperative has seen a massive reduction in milk supply after the co-operative’s suppliers abandoned it in the wake of massive milk price cuts.
Milk supply has fallen from 3.5 billion litres in 2015-16 to a forecast two billion litres this season.
‘‘The job losses were part of a commitment to reduce costs and drive business improvement,’’ MG wrote in a letter to shareholders.
‘‘Over the last 18 months we have managed a lower milk intake through a reduction in our contractor workforce, changes to rosters and the use of annual leave and accumulated hours.
‘‘However, more decisive action is needed. Voluntary redundancies will be offered for the majority of impacted roles. These changes will significantly increase operational efficiency, while enabling us to meet demand for MG dairy products.
‘‘This decision is regrettable but necessary. These actions have been taken to ensure MG can deliver sustainable and competitive returns.’’
National Union of Workers Victorian secretary Gary Maas said while Murray Goulburn was claiming a reduction to milk supply was the reason for further redundancies, the reduction flowed directly from poor past corporate behaviour.
‘‘Farmers have left the embattled dairy company on the back of poor farm gate prices, reducing its milk supply by one third,’’ he said.
‘‘It remains our hope that in the event Saputo take over these Murray Goulburn assets, they will be able to take these facilities back to full supply.
‘‘The union will continue to support workers to save their jobs and communities.’’
❝The job losses were part of a commitment to reduce costs and drive business improvement . . . This decision is regrettable but necessary. These actions have been taken to ensure MG can deliver sustainable and competitive returns.❞