500 jobs go in paper industry

February 2, 1994
Issue 

By Ian Jamieson

ROSEBERY, Tasmania — Amid the backslapping from pundits that Tasmania's economy has turned the corner, giant paper-maker Amcor is to retrench 300 employees. The retrenchments are part of a national package to sack 500 from its 10 mills in NSW, Victoria and Tasmania.

The announcement has further devastated the Burnie pulp and paper mill. Over the past 18 months almost half its original work force will have been shown the gate. When the scheduled 250 have been forced out, only 560 will remain.

The Wesley Vale mill is to lose a further 50 workers.

According to Amcor, the sackings are part of rejuvenating the pulp and paper industry in Australia. Fifty-one million dollars is to be invested in the industry, either in environment programs or in the introduction of capital intensive technology, it claims.

Amcor began cuts in Tasmania last November when it acquired North Broken Hill's paper interests. It was widely feared that retrenchments would occur despite assurances that the buy-out was benign.

The honeyed talk from Amcor chiefs continues, with executives meeting Premier Ray Groom during the week and promising not to rule out a $200 million paper machine for Burnie. Groom was also satisfied that some contracting jobs may be available following the lay-offs.

ACTU president Martin Ferguson was quoted as saying there was little the union movement could do to save jobs. A spokesperson for the ACTU has explained that in talks with Amcor, retrenchment packages would be high on the agenda.

Only last September, Ferguson said he was pleased that Amcor was willing to negotiate restructuring with the ACTU. This was in marked contrast to the NBH approach, in which hundreds of employees were sacked in 1992, leading to mass pickets involving hundreds of supporters for weeks.

The tacit approval of the ACTU for hundreds of job losses hasn't impressed the mill workers. Amcor's decision has been blasted as an "absolute disgrace" by Bryan Green, secretary of the Burnie Trades and Labour Council. He demanded Amcor work with the community instead of against it.

John Lynch, of the Transport Workers Union, has pointed to the retrenchments as the tip of the iceberg, with many more jobs being lost in associated transport and logging operations. Burnie wharfies and port staff would also feel the pinch.

Tasmanian Greens' leader Christine Milne slated the premier for allowing the situation to arise. During Amcor's takeover last year, she had challenged the state government to use its power over forest concessions to force a better deal. If the state government hadn't granted the concessions, it would be in a far better position to prevent the retrenchments.

You need Green Left, and we need you!

Green Left is funded by contributions from readers and supporters. Help us reach our funding target.

Make a One-off Donation or choose from one of our Monthly Donation options.

Become a supporter to get the digital edition for $5 per month or the print edition for $10 per month. One-time payment options are available.

You can also call 1800 634 206 to make a donation or to become a supporter. Thank you.