Victoria’s State Government has been accused of failing to provide any clarity on timber supply for Opal’s Maryvale Mill with workers still in limbo. Source: Timberbiz
Employees this week were informed that the state-owned government agency, VicForests has been unable to resolve the wood supply situation which resulted in hundreds of workers being stood down and the local manufacturing of white copy paper cease.
The State Government refusal to close loopholes in the Timber Code of Practice enabled activists to take out court injunctions to stop legal timber harvesting operations and starve the mill of its timber supply.
The Nationals Member for Morwell, Martin Cameron said it was devastating to see, the last roll of Australian made white copy paper coming off Maryvale’s M5 line only hours before Christmas.
“The Andrews Government’s failure to allocate an alternate wood supply to secure Latrobe Valley jobs at the Maryvale Mill is a disgrace,” he said.
“Labor’s covert strategy to orchestrate a shutdown as Christmas holidays commenced is underhanded and deliberately white anted workers.
“White copy paper manufacturing jobs are being sacrificed by Daniel Andrews because they don’t meet Labor’s green ideological agenda.
“The closure of the M5 has enormous economic impact on the Latrobe Valley – it’s not just direct jobs in the firing line, there are hundreds of contractors and temporary staff impacted.
“Australia will likely experience white copy paper shortages as supply must now be imported from foreign countries devoid of the same strict environmental standards.”
In March 2020 the Andrews Government struck a commercial in confidence deal stating “The government’s 30-year transition plan is about providing much-needed certainty for Australian Paper workers and their families”
“Yet only a few years later and all Labor talks about is compensation and transition schemes which fail to deliver certainty – the Andrews Government has not muttered one word around supporting long term jobs and local manufacturing,” Mr Cameron said.
“I’m not interested in hearing Labor’s spin on minimising job losses; I’m interest in standing up for Latrobe Valley and securing long term manufacturing jobs for workers.
“Talks about compo and minimising job losses are just smoke and mirrors,” he said.
“Labor’s once again shown its intent on abandoning Latrobe Valley workers and industry.
“The Nationals will continue fighting for Maryvale Mill, with my Gippsland Nationals colleagues Melina Bath and Danny O’Brien also right behind workers.
“Where there is a will, there is way to secure jobs at the Mill, and for the future of Latrobe Valley families, The Nationals will not let this one go quietly.”
In a statement released on Wednesday Opal Australian Paper said it had been working to address the current shortfall in VicForests supply.
“To be viable the alternative supplies must match a range of strict criteria including species, availability, volume, cost, logistics and long-term supply,” the company said.
“To date we have been unable to identify viable alternative sources of wood and as a result, white paper production on the M5 machine at Maryvale was impacted from 23 December.”
Opal said it has been engaging in active discussions with the Victorian Government and union representatives about this situation.
“We have reached an agreement with the Victorian Government ensuring that until mid-February Opal team members who may be stood down will receive full pay.
“This is intended to provide certainty for Opal team members while the company and the Victorian Government progress discussions on any further support for the Mill’s future operations.”
The company said that in addition to Opal’s own Employee Assistance Program and other support services, a new Worker Support Service has been established by the Victorian Government to support Opal Australian Paper team members affected by potential stand downs and operational changes as may be required as a consequence of a possible future scaling down of white side manufacturing, one scenario currently being considered.
Opal continues to consider a number of different operational scenarios for the longer term, in case possible alternative wood sources are below the volumes required or are not commercially feasible.
“This is a complex situation and no longer-term decisions on operational changes have been made at this stage,” Opal said.
“While the current situation is difficult for everyone, Opal remains committed to keeping our team members, customers and key stakeholders updated on further developments. We are continuing to work diligently with a view to providing clarity for our team members as soon as practicable.”