Falling demand for lamb overseas has led Australia’s largest meat processor, JBS Australia, to stand down 200 workers from its abattoirs in Victoria and South Australia.
Australasian Meat Industry Employees Union secretary, Paul Conway, said the union was only officially told of the extended shutdown on Monday, with 140 workers in Brooklyn and 60 in Bordertown affected.
Meanwhile workers in Victoria’s Cobram abattoir would have their hours reduced to a four-day working week, Conway said.
“The stock prices for lamb are that dear at the moment that it’s unviable for the company to continue to produce at current levels,” he said.
“It’s not unusual for seasonal shutdowns to occur because things like flood and drought can affect the industry, but in the past four or five years the industry has been lucky, making this shutdown something workers are feeling.”
Casual staff and workers on 457 visas would be the first to go, Conway said, while about 60 permanent positions would be affected.
It was unclear how long the stand down would last, Conway said.
“But come September, when you have spring lamb season, it will be well and truly running again by then,” he said.
While the stand down was due to the seasonal nature of the industry, Conway said workers would have appreciated more notice.
JBS Australia’s director, John Berry, did not return calls from Guardian Australia for comment, but he told the ABC positions were not being made redundant.
“My understanding is JBS is not the only processing business that has made this decision; there are others in the industry,” he said.
Sheep processor Fletcher International, in Dubbo, has also been forced to shut down for a fortnight, citing a lack of supply.
