Australia's biggest meat processor will shed 600 jobs as it moves to scale back operations at its Dinmore plant in Ipswich.
In a statement JBS cited a range of issues, including COVID-19, extended drought conditions and a severe livestock supply shortage.
The company had also been heavily critical of the Federal Government's JobKeeper Program, which it claimed had created inequality in the meat processing sector and contributed to today's decision, as well as several shutdowns in recent weeks.
Under JobKeeper eligibility criteria, companies with more than $1 billion in revenue must show a 50 per cent drop in turnover, while companies earning less than that amount are required to demonstrate a 30 per cent fall in income.
JBS said the action to scale back operations would allow it to preserve 1,150 full time jobs at Dinmore and protect "the long-term future of our Dinmore facility and other Queensland beef processing operations."
Silent nights
Australasian Meat Industry Employees Union Queensland branch secretary Matt Journeaux said the night shift would be stood down indefinitely from September 21.
He said JobKeeper had allowed smaller processors to pay more for cattle and keep their shifts.
"Unfortunately, it's a perfect storm," Mr Journeaux said.
"But the playing field has been tilted to those plants receiving JobKeeper.
"Some large meat processors using third party labour hire companies have been receiving JobKeeper and passing those savings onto their host."
'Distortion' and 'devastation'
The Federal Member for Blair, Shayne Neumann, said the job losses would be catastrophic for the Ipswich economy and for the families involved.
"It's one of the worst days we've had for years," he said.
"JBS is our largest private employer.
"My first job in life was to work at Dinmore as a cleaner, my uncle worked there, my cousins worked there, and my father worked there.
"I am just devastated for these people."
Mr Neumann also blamed the Federal Government's JobKeeper program for the job losses.
"The Government is effectively providing JobKeeper to labour hire companies who are producing labour at a cheaper rate into other meat processing plants," he said.
"So those processing plants can bid higher for cattle.
"This is a distortion of competition — it's driven up prices, they're outbidding JBS.
"The margins are already compressed in the industry and the market imbalance has resulted in a poor outcome for these JBS employees.
"I throw this at the feet of the Federal Government, they should do the right thing."
