Millicent tissue mill transformation project sparks job cut fears

A proposed transformation project at a major tissue mill in regional South Australia has sparked fears of significant job cuts, prompting concerns about the impact on the local community.

The Millicent tissue mill, which has been operating since 1960, employs hundreds of people and produces millions of toilet rolls for the Australian market each year. The uncertainty for the local site follows a recent takeover by international hygiene company Arbex.

Job cut fears

The Timber, Furnishing and Textiles Union has confirmed it is in discussion with management about the "reported changes and their implications for workers". District secretary Denise Campbell-Burns said the union would advocate strongly for the workers, their families and the broader Millicent community, which has a population of about 4,700.

In a statement, Arbex said it was in talks about a "proposed transformation program" at the site. "Millicent remains a critical part of Arbex's Australian manufacturing network," a spokesperson said. Arbex declined to comment on the impact on jobs given consultation was ongoing.

A major regional employer

Over the six decades it has been operating, thousands of locals have worked at the Millicent mill. In the 1980s about 1,000 people worked at the plant, though that has declined to about 400 employees currently.

"Employees within our community and the region have held careers here from when they left school to when they've retired," Wattle Range Mayor Des Noll said. "Some of these employees have been here for 50 years."

"For every one employee, it's supported three others in our community, as well as local contractors."

Calls for transparency and support

The region's federal and state politicians have called for clear answers on how many jobs will be cut as part of the changes. Federal member for Barker Tony Pasin said he had been advised of "workforce reductions", but the advice was "vague and non-committal".

"Local reports and rumours suggest the number of jobs at risk could be as high as 100, around a quarter of the workforce," he said. "If that figure is anywhere near accurate, senior management needs to come clean with the local community about the scale of these proposed job losses and what they mean for the long-term future of the mill."

State MacKillop MP Jason Virgo said he had written to the state and federal governments calling for outplacement and worker transition programs for affected workers.

"We cannot stand by and watch good local jobs disappear without a coordinated plan to support workers and protect the future of the community," he said.

Ms Campbell-Burns said reported job losses created questions about the long-term viability of manufacturing jobs. "Products such as toilet paper, tissues, medical disposables and other personal hygiene products are not luxury items — they are critical everyday necessities," she said.