Paper mill cuts 84 jobs, blaming Victorian government for lack of timber

Opal Australian Paper said the latest round of job cuts announced today followed a "detailed review of operations". "The end of white paper production has significantly changed the operational footprint of the Mill, and the site has been working to right-size its operations as a kraft and recycled paper manufacturer," the company said in a statement. "This has included ongoing fixed cost reductions to align with its reduced footprint." The mill is one of the largest employers in the Latrobe Valley, which has a history of high unemployment stretching back to the privatisation of the state's coal-fired power industry in the 1990s. More recently, it has been hit by the closure of the Hazelwood power station in 2017, resulting in the loss of 900 jobs. Opal said it was proposing to make the cuts across "salaried team members and team members covered by the respective Maryvale enterprise agreements". "This number includes previously announced roles that are still in consultation, roles that have not been filled following voluntary departures or the end of fixed-term contracts and voluntary redundancies". In its statement, the company said it suffered "substantial losses due to the Victorian Government's failure to meet its contractual obligations under the Wood Pulp Agreement". The ABC has approached the Victorian government for comment.