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Forestry Corp to divest of half the Walcha workforce

Employees at the Forestry Corporation’s Walcha native forest operation were told of a proposal that will see more than half their jobs go. This would represent about 10% of the total proposed job cut across the State. Source: Walcha News, ABC News

“Forestry Corporation of NSW (formerly Forests NSW) has informed staff it is restructuring its Hardwood Forests Division and has commenced consultation on a proposed new structure,” said Dean Anderson, general manager Forestry Corporation of NSW’s Hardwood Forests Division.

“The native forest timber industry is an important sector for NSW and the driving force behind these proposed changes is to ensure the long-term sustainability of the business.”

Anderson said Forestry Corporation’s Hardwood Forests Division and its customers make a significant contribution to the State economy and to the timber industry as a whole.

“Times have been tough for our industry in recent years, with the combination of a depressed local market and a strong Australian dollar putting pressure on the industry, and our hardwood forests division has been operating at a loss,” he said.

“The viability of our hardwood operations is important to the industry and to consumers looking for quality, sustainably grown native timber products, so we must make addressing this loss a priority.

“The proposed changes will increase efficiency and reduce costs to ensure Forestry Corporation continues to provide the community with environmental and recreational benefits while remaining a competitive player in the NSW timber industry, which contributes nearly $1 billion a year to the economy.”

He then went on to explain that at this stage, the plan is a proposal only.

“We will consider all feedback from staff over the consultation period. We take this process seriously and can’t pre-empt the outcome,” he said.

“While many jobs are expected to change, under the current proposal the majority of staff are expected to be re-deployed to regionally based roles and Forestry Corporation will remain a major regional employer.

“The proposals put to staff include a degree of flexibility around the location of many roles, so while unfortunately some positions will be lost we are unlikely to know where until recruitment is complete.

“We’re looking to have one production unit for the North Coast, one for the South Coast, and one for out west,” he said.

“What we’ve done is put this proposal to all our staff, we went around and talked to everyone, and the outcome of that is yes, there is likely to be less jobs.”

Anderson said the job cuts in regional offices are needed to ensure the organisation can live within its means.

“It is very likely that a significant portion of the staff will need to reapply, and that is to ensure that everything is done in a fair manner.

“So that everyone gets a chance to stay in the job,” he said.

The NSW Opposition said jobs will go and offices will close along the north coast.

The current proposal will not impact staff in the softwood plantations side of the business, which was restructured last year.

This is just the latest in a series of blows to the Walcha timber industry over the last few years.

Last year Brian Smith Transport lost 60% of its annual work in hardwood forests after Forest Corporation cutback its harvesting operation owing to weak consumer demand.

“We had to lay off six people because of that downturn,” Smith said.

In July 2008 Boral announced its intention to close the Walcha timber mill.

In spite of solid opposition to the closure from CFMEU Union members across the State, the local community, Council and regional politicians the mill ceased operation in August 2008.

Forestry Corporation expects to finalise the new native forest structure and begin filling roles from March however, it is doubtful if the final impact on Walcha based jobs will be known until April or May.