The Australian Workers Union has placed the blame for Gunns’ closure of its Deanmill sawmilling site squarely on the shoulders of the state government.
The Australian Workers Union has placed the blame for Gunns’ closure of its Deanmill sawmilling site squarely on the shoulders of the state government.
AWU state secretary Stephen Price said the Barnett government needed to do more to protect the state’s unique timber industry from the dumping of product from overseas.
Earlier this week, Gunns said it would close the Deanmill site, near Manjimup in the South West, laying-off 44 employees.
Gunns will maintain its Manjimup processing and Welshpool retail sales operations to reduce stock over the next 12 to 18 months, after which a decision on their future will be made.
Gunns chief executive Greg L’Estrange also blamed the state government for the closure, but pointed the finger at the previous Labor government, which restructured WA’s forestry industry significantly seven years ago.
In 2004, the Gallop government banned the logging of old growth forests, which was followed by the closure of several small mills.
“We said last year when announcing the review that the WA government’s restructure of the timber industry in 2004 has resulted in a lower grade of log being received, together with the significant increase in the cost of the log resource,” Mr L’Estrange said.
He also cited the influx of imported timber as affecting the market negatively.
“The volume and price of imported timber products coming into the local market has also had an impact on the business,” Mr L’Estrange said.
“We have held talks with several possible buyers but have been unable to reach any agreement.”
Mr Price said the closure would have a far-reaching impact on the South West and could spark more closures in the industry.
“Gunns is a big part of the timber industry and this move will make a lot of other operations very concerned,” Mr Price said.
“It’s a devastating blow to the South West and Manjimup.
“When you make 44 workers redundant, you make 44 families wonder where they are going to get another source of income from, which in turn sends waves throughout the entire community.”
Mr Price said he was aware some of the affected workers had been made redundant for the second time in two years after moving from Gunns’ Yarloop Jarrah Mill in 2009.
The Deanmill Jarrah facility is due to close on February 18.
