Australian wine company Accolade Wines has announced it is seeking approximately 35 redundancies from its Berri Estates operations in South Australia's Riverland.
The company met with employers and union representatives on Wednesday, citing changing market conditions and a consumer preference for bottled wine as drivers behind the decision.
In a statement, Accolade's general manager for Australian supply chain and operations, Wayne Ellis, said it could no longer shoulder increased costs.
"To meet the changed market, and operate efficiently … we will unfortunately be looking for approximately 35 redundancies," he said.
"Accolade has tried to avoid redundancies by carrying excess costs over many months, but that cannot continue."
The wine company said staff made redundant would receive full entitlements, along with offering outplacement support and access to counselling.
"We are committed to a proper and fair consultation process and will do our best to keep job losses to a minimum," Mr Ellis said.
In a statement, United Voice SA Branch Secretary, David Di Troia, said the union was currently consulting with the company.
"Initial indications from the company are that redundancies will be on a voluntary basis," he said.
"United Voice will be working with members and the company during this difficult time to ensure that members are properly consulted, and receive all of their proper entitlements."
Riverland local MP, Tim Whetstone, said it was a tough decision for a region facing workforce issues.
"It is a sad day for those people and those families who now find themselves out of a job," Mr Whetstone said.
"The job losses at Glossop will add to an already very high unemployment rate in our region."
"I would like to think that some of those jobs will be picked up in the existing wine industry."
$40 million bottling facility set to start
Today's announcement comes as the company announced construction at Berri Estates' $40 million bottling plant and distribution centre is set to kick off in the coming months.
Originally forecasting construction to start in late 2016 or early 2017, Mr Ellis said the facility was set to start being built this December.
"Once operational there will be over 40 new roles at the plant which will have the capacity to produce in excess of eight million bottles annually," Mr Ellis said.
The construction, which is estimated to take less than 12 months, will employ up to 200 people.
