Maryvale Paper Mill to Cut 84 Jobs, Citing Timber Supply Dispute with Victorian Government

Opal Australian Paper has announced plans to cut 84 jobs at its Maryvale paper mill in Victoria's Latrobe Valley, attributing the decision in part to the Victorian government's failure to meet timber supply commitments under the Wood Pulp Agreement.

The company said the proposed redundancies follow a detailed review of operations after the end of white paper production in early 2023. That closure ended Australia's last remaining white paper manufacturing operation and resulted in 156 job losses.

In a statement, Opal said the mill's transition to kraft and recycled paper manufacturing had significantly reduced its operational footprint, requiring ongoing fixed-cost reductions to align with the site's current operations.

The company said the proposed reductions would affect both salaried employees and workers covered by the Maryvale enterprise agreements. The total includes previously announced positions still under consultation, roles left vacant following voluntary departures or the completion of fixed-term contracts, and voluntary redundancies.

Opal also stated that it had incurred substantial losses due to what it described as the Victorian government's failure to meet its contractual obligations under the Wood Pulp Agreement. The company declined to provide additional comment beyond its statement. The Victorian government has been approached for comment.

According to internal company documentation obtained by the ABC, the proposed cuts include 19 yard, first aid and fire roles, 21 positions that have remained unfilled following resignations or the expiry of fixed-term contracts, and 19 leadership positions across cleaning, occupational health and safety, building trades, and planning and scheduling.

The Timber, Furnishing and Textiles Union (TFTU) said it was informed of the proposal late on Thursday evening. Union president Denise Campbell-Burns said approximately 65 union members would be affected and expressed concern about the removal of roles related to first aid, fire response, training, skills development, and workplace safety.

The Maryvale mill remains one of the largest employers in the Latrobe Valley, with the ABC reporting that about 500 people currently work at the site. The region has experienced significant industrial job losses over recent decades, including following the closure of the Hazelwood power station in 2017.