SOUTH Australian-based meat processor Thomas Foods International has blamed seasonal conditions and lower sheep numbers on a cut in processing capacity at its Lobethal plant.
A statement from the company issued yesterday said it is reducing its processing capacity in South Australia due to the well-documented drought in South Australia and lower livestock supply.
TFI processes sheep, lambs and goats at its Lobethal plant, and also operates another (currently beef) abattoir near Murray Bridge, at Tamworth (sheep, lambs and goats) in New South Wales, and Stawell (sheep and lambs) in Victoria. It is not known if the other TFI plants will also have their production capacity cut.
The company said Lobethal production workers were notified on Friday, and it is envisaged that most workers will be utilized under the new working arrangements. Employees will be offered work at its other sites if not required at Lobethal, TFI said.
The company said the drought has sharply decreased sheep numbers, with recovery not expected before 2027, despite recent rainfall. The Lobethal facility remains committed to long-term operations as a leading smallstock processor, the TFI statement said.
Australasian Meat Industry Employees’ Union SA branch secretary Justin Smith told Sheep Central he is still waiting to hear from the company on how long the pm shift is going to be stood down.
“We know from previous situations like this that the company will do all it can to find the sheep and to keep workers employed.
“Obviously if the stand down goes on to long we will be seeking agreement with the company that long term direct employees be employed first, but until we know what the company is doing it is difficult to do much more,” Mr Smith said.
On Monday, Mr Smith told members in a letter that the union was informed late Friday afternoon of a stand-down of the pm shift at the TFI Lobethal site.
Mr Smith wrote that the company did not provide a detailed explanation, stating only that sheep numbers had dropped significantly and they were working to address the issue.
“Your union expressed strong concerns regarding the timing and lack of notice — particularly as you are only just returning from an extended shutdown.
“This situation could and should have been handled more appropriately,” he said.
Mr Smith said the company has since agreed to keep us informed and to involve the union in any future consultations regarding staffing levels.
In the latest TFI statement on the development this afternoon, the company it had met with workers and it expected most will continue to be employed at other sites if not needed at Lobethal.
“Management at Thomas Foods International’s Lobethal plant has met with workers today (July 30) to provide an update of processing operations.
Given current market conditions, TFI will move to a single shift at its Lobethal processing facility which employs approximately 600 workers.
The difficult but necessary decision to move from two shifts to one extended and more efficient single shift, reflects drought conditions and lower livestock supply.
The company expects the majority of the current workforce will continue to be employed under the new working arrangements with employees also to be offered work at its other sites, including Murray Bridge, if not required at Lobethal.
As we work through this process with workers over the coming days, the company is focussed on keeping job losses to a minimum.
Thomas Foods International’s Lobethal facility is one of Australia’s leading smallstock processing plants, and the company remains fully committed to its long-term future, including value adding.
Thomas Foods International’s Murray Bridge facility is not impacted, with plans currently underway to increase beef processing there from 700 to 800 head per day.”
Maybe the union could have lobbied the Labor governments with some fodder support? Maybe a lot more breeders could have been retained instead of a two-year rebuilding period, as they will have to retrain as all the skilled reliable workers will have found work in other easier industries? Labor governments seemed to be more worried about international issues and turning our best land into industrial junkyards.