NANGWARRY’S timber processing sector has come to an abrupt end with the sudden closure yesterday of Carter Holt Harvey’s Futurebuild site.
While the closure of the site came as little surprise, it has left 25 timber workers without a job less than two weeks out from Christmas.
The move has closed the final chapter on the once bustling timber processing sector in the township.
During its peak the site employed hundreds of people and boasted one of the largest sawmills in Australia.
While the closure is part of CHH’s exit strategy from the region’s timber processing sector, it is hoped a new owner could breathe new life into the mothballed site.
Timber workers union South East secretary Brad Coates – who negotiated breakthrough improved redundancy conditions for the workers yesterday – described the closure as the end of an era for Nangwarry and the demise of a major processing site.
“They shut the site, sent the workers home and they will not be back,” Mr Coates said shortly after yesterday afternoon’s announcement.
“Twenty five years ago there would have been 600 people on the site – now there is nobody.”
He said the CHH board only ratified the closure of the site at a meeting yesterday morning in New Zealand.
It was meant to be the last day of operations at the site before the workers went on holiday for the Christmas break.
Speaking at the sprawling site yesterday, Mr Coates said the union negotiated increased redundancy conditions for workers that included 12 weeks pay on top of their existing redundancy packages.
While the workers were disappointed with the closure, he said the employees now had certainty moving forward.
“It is a sad day, some of the workers had been at the site for more than 35 years – some would have never worked anywhere else,” the Construction, Forestry, Mining and Energy union official said.
While regional CHH officials yesterday agreed to the improved conditions, Mr Coates said this provisional agreement still needed to be ratified by the company’s board.
“If the board does not agree, then the workers could see themselves back at work. We do not anticipate that, but we are talking about CHH,” the union leader said.
While the company was yet to indicate the site’s future, he foreshadowed CHH was likely to put it on the market.
He said this would be similar to its expansive Sturt Street site in Mount Gambier, which was already for sale.
Mr Coates said CHH indicated they were closing the site because of the lack of orders flowing in.
“These orders have been fairly lean, it has been very quiet,” the union official said.
Asked about the future of the displaced workers, he said many would seek work at other regional timber sites.
Given the upturn in the industry, he said there were employment opportunities at a number of regional timber processing sites.
“But at least they will go into Christmas knowing about their future so they can seek work in the new year period,” Mr Coates said.
It is understood there are also around six salaried workers on the site, which are not covered under the enterprise bargaining agreement.
Carter Holt Harvey has already sold its other processing sites in Mount Gambier and Dartmoor.
The company has a long standing no media policy.
