The Timber, Furnishing and Textiles Union is calling for government support to strengthen local manufacturing amid job uncertainty at the Millicent tissue mill in South Australia, which employs around 400 workers and was recently taken over by Arbex, a joint venture between Suzano and Kimberly-Clark.
AI-generated summary
The Millicent tissue mill has operated since 1960 and was previously owned by Kimberly-Clark Australia before being taken over by Arbex, a joint venture between Suzano and Kimberly-Clark, raising concerns about job security and local manufacturing capacity.
The national timber union wants governments to do more to strengthen local manufacturing amid concerns of job cuts at one of the country's largest tissue plants.
The Millicent tissue mill has been operating in the regional South Australian town since 1960, employing hundreds and making millions of toilet rolls each year for the Australian market.
The uncertainty for the local site, formerly owned by Kimberly-Clark Australia, followed a recent takeover by international hygiene company Arbex.
While the Timber, Furnishing and Textiles Union declined to speculate on how many jobs could be axed, it confirmed it was in discussion with management about the "reported changes and their implications for workers".
District secretary Denise Campbell-Burns said the union would advocate strongly for the workers, their families and the broader Millicent community, which has a population of around 4,700.
In a statement, Arbex said it was in talks about a "proposed transformation program" at the site.
Arbex declined to comment on the impact on jobs given consultation was ongoing.
A major regional employer
Over the six decades it has been operating, thousands of locals have worked at the Millicent mill.
In the 1980s about 1,000 people worked at the plant, though that has declined to about 400 employees currently.
The site was previously owned and operated by Kimberly-Clark Australia (KCA), but earlier this year it was taken over by Arbex — a joint venture between Brazilian pulp producer Suzano and Kimberly-Clark.
"Employees within our community and the region have held careers here from when they left school to when they've retired," Wattle Range Mayor Des Noll said.
"For every one employee, it's supported three others in our community, as well as local contractors."
Mr Noll said KCA had been proactive in the community, and it had been "business as usual" since the move to Arbex.
He said he hoped to discuss any changes at the mill with management as the process continued.
The mayor's wife, Shari Noll, retired from the mill five years ago after a 30-year career. She said the name change had caused some confusion in the community.
"When the name changed, there were a few reactions of, 'Who is this? What does that mean?'" she said.
"It always plays in your mind that with change, does that mean there's going to be a restructure of some sort?"
Calls for transparency and support
The region's federal and state politicians have called for clear answers on how many jobs will be cut as part of the changes.
Federal Member for Barker Tony Pasin said he had been advised of "workforce reductions", but the advice was "vague and non-committal".
"Local reports and rumours suggest the number of jobs at risk could be as high as 100, around a quarter of the workforce," he said.
"If that figure is anywhere near accurate, senior management needs to come clean with the local community about the scale of these proposed job losses and what they mean for the long-term future of the mill.
State MacKillop MP Jason Virgo said he had written to the state and federal governments calling for outplacement and worker transition programs for impacted workers.
He said he also wanted reports of dumping of imported tissue products to be investigated.
"We cannot stand by and watch good local jobs disappear without a coordinated plan to support workers and protect the future of the community," he said.
Ms Campbell-Burns said reported job losses created questions about the long-term viability of manufacturing jobs.
"Products such as toilet paper, tissues, medical disposables and other personal hygiene products are not luxury items — they are critical everyday necessities," she said.
"Australia cannot afford to continue allowing the erosion of the skills, infrastructure and production capability required to make essential products locally."
AI outlook — possibilities, not facts
Governments will face pressure to provide outplacement and worker transition programs for impacted workers at the Millicent tissue mill.
Likely · Within weeks
Arbex will provide clearer details about workforce reductions as consultation processes conclude.
Possible · Within weeks
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