Harvey Beef sacks 160 workers in WA

West Australian meat exporter Harvey Beef has failed to rule out further job losses
after sacking 160 workers from its plant south of Perth.

A total of 120 full-time and 40 contract positions are to go to "ensure the
sustainability of ... operations," the company said in a statement.
The redundancies, including 109 meat processing positions, will be made at the
company's Harvey plant, 140km south of Perth, while boning operations at Fremantle
will be leased out.
"Do I think that this is the end of the restructuring program? The answer to that is
no," general manager of operations Dean Goode told AAP on Wednesday.
"We still need to continue to look at other areas of the business, logistics, sales
and marketing, ensuring that we've covered all the aspects of the business ... not
just ... the people that work here.
"I wouldn't call it downsizing it's about right sizing."
The company, which received a $3.3 million bailout from the state government four
years ago, has blamed the economic downturn.
"Faced with reduced demand due to the global financial crisis and high labour costs,
the company had to act," the company's statement said.
"Harvey Beef's wage costs per kilogram of beef produced are currently higher than
the costs of most other Australian abattoirs. This is not sustainable."
WA Agriculture Minister Terry Redman said he had been made aware of problems in the
industry at a meeting with Harvey Beef six weeks ago.
"We knew it was an issue that was under some strain, we knew all about that. We
didn't expect it necessarily to get to this position but in the context of the
business environment that they face, they need to get themselves to a viable
position," Mr Redman said.
"The last thing we want is Harvey Beef closing."
He said the government would not be offering a redundancy package because the
company was still viable.
"This government is not in the business of supporting businesses directly," Mr
Redman told journalists.
"However we have clearly got a job to cushion the impact ..."
The Australasian Meat Industry Employees Union has accused the company of using
current economic conditions to try to drive down wages.
Only last week workers were asked to take a 20 per cent pay cut, the union said.
Mr Redman said he was not sure that was the company's motivation.
"There's a whole heap of businesses in Western Australia, nationally and
internationally, that are readjusting their settings," Mr Redman said.
"I'm not close to ... their books and how they work their businesses to make a call
on whether (Harvey Beef are) overstepping the mark.