300 jobless as Young

abattoir goes belly-up

Planned sale to Chinese buyer fell

through, says managing director

THREE-hundred workers at Young’s Burrangong Meat Processors have lost their jobs after the abattoir – the town’s biggest employer – unexpectedly went into receivership yesterday (Tuesday).

Right: Burrangong Meat Processors’ managing director, Grant Edmonds . . . “everyone’s devastated”.

The workers were laid off at a hastily called meeting about 2pm.

The managing director, Grant Edmonds, is quoted this morning saying the abattoir was placed in receivership after its expected sale to a Chinese buyer fell through.

He says it is devastating for the town.

“It’s just a disaster,” he told regional radio. “We tried to avoid it at all costs.

“We thought we had it [the sale] right, but it didn’t happen. Everyone’s devastated I would imagine. It’s just dreadful.”

The receivers, PPB, are due to address a meeting of workers at 1pm today to outline what their entitlements are.

Mayor of Young, Stuart Freudenstein, says the loss of so many jobs has come as a shock to the whole community.

“There was no warning that something this drastic was going to happen,” he is quoted saying.

“There was still stock left in the yards and they were killing – goats and cattle were about to be killed, and so on.

“So it looked like a fairly normal day, from what I’m told, and then all of a sudden at two o’clock that was it, they stopped the kill.”

The abattoir has operated under Mr Edmonds’ stewardship since 1985, producing beef, lamb, pork and goat products for national and export markets.

Workers reportedly say the drought and high stock prices may have been a contributing factor to the plant’s closure.

Mr Edmonds is quoted saying the closure was due to factors including a $4 million power plant –

designed to use the plant’s methane gas – going over budget.

“That was going to save us about $1 million a year,” Mr Edmonds told regional radio.

“Also expenses, top prices, and unable to trade in a profit in the last few months. [Not] able to get enough stock to make a margin. Stock’s very expensive and it’s just difficult to get price back.”

Mr Edmonds says up until Monday, he thought the company was to be sold to an overseas buyer. But the sale fell through.

“I guess everyone’s in a state of shock, including me really,” he says.

“It’s been going for over 25 years and it’s just dreadful.”

Mr Edmonds says the strong Australian dollar has also played a part in the company’s downturn.

“The dollar [has gained] about 46 per cent in the last few months so, yes, it certainly made a difference,” he says.

The Federal Liberal MP for Hume, Alby Schultz, a former meat-worker and abattoir manager, says he hopes the receivers can cover the newly jobless workers.

“I’ll certainly raise the issue with the Minister for Agriculture, Tony Burke, today in the House [of Representatives],” he says.

Rumours of the plant’s closure had been circulating for some time, according to reports.

“Naturally, Centrelink is going to be inundated today with people looking for other employment and our hearts go out to those employees with families and commitments who would be in a bit of a state of panic at the moment, I imagine,” the Mayor of Young, Cr Freudenstein, told Sydney radio this morning.

“We’re pretty resilient people,” says Cr Freudenstein, adding that Young had continued to grow during drought and tough economic times.

“I’m pretty confident we will kick on,” he says.

Comment is being sought from the Australasian Meat Industry Employees’ Union (AMIEU).