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Expansion of the Victorian Forestry Worker Support Program

Deb Kerr

The Victorian Government is scaling up support for timber workers, sawmill operators and their communities, as Victoria transitions away from native timber logging.  Minister for Agriculture Gayle Tierney announced the expansion of the Victorian Forestry Worker Support Program. Source: Timberbiz

The program will increase worker top-up payments from up to $120,000 to $150,000 and allocating extra payments to workers over 45 years old. Source: Timberbiz

“After listening to the timber industry, we have expanded our support program – ensuring worker needs are met,” Ms Tierney said.

“I thank our industry stakeholders for engaging constructively to deliver meaningful support for timber communities.”

The Victorian Forest Products Association has welcomed transition package in principle but is disappointed that it benefits some and punishes others.

VFPA CEO Deb Kerr said that she was disappointed that the mill exit package doubly punished those businesses that had acted in good faith.

“As details about the exit package come to light, it’s evident that our mills are being punished twice,” Ms Kerr said.

“They have invested tens of millions of dollars in new manufacturing facilities to see them through to and beyond the originally announced 2030 deadline – a deadline that the government has reiterated numerous times since the original 2019 announcement.”

The Australian Forest Contractors Association said the revised transition package for forest workers and businesses goes some way to increasing certainty for the people most affected by the decision to end native timber harvest in Victorian state forests.

“AFCA has been integral in getting the updated compensation for industry and workers, and we will continue to work to ensure certainty for contracting business into the future,” AFCA general manager Tim Lester said.

The wider community forestry sector – including firewood sellers, guitar makers, seed collectors and other forest produce licensees will be eligible for the expanded worker support payments, and redundant equipment compensation, plus payments for undersupplied timber, and a one-off hardship payment.

The first round of the Forestry Transition Fund is now open to create more local jobs in impacted timber communities. The fund will provide grants of up to $1 million to expand, diversify or start new businesses while also allocating wage subsidies to incentivise people to employ transitioning timber workers.

The Sawmill Voluntary Transition Package is also now open to support mill owners to stay in the industry or switch to new sectors. These packages will ensure workers entitlements are met and will include plant and equipment compensation.

An initial Harvest and Haulage Support Package will be available for forest contractors in September, which will include contract and equipment compensation and worker redundancy payments.

Harvest and haulage sub-contractors, chip truck drivers and other businesses heavily dependent on the native timber industry, will also be eligible for the next round of the Timber Innovation Grants expected to reopen in late September.

The Government will continue to consult with forest contractors to ensure their critical skills are retained for ongoing management of the state’s public land with genuine opt-out packages available for those who choose to exit.

Mr Lester said that the AFCA wholeheartedly rejected the premise and basis of the government’s decision regarding the future of native timber harvesting in Victoria.

“We believe the best way to sustainably manage the forest estate is with industry providing well-regulated services that balance out the needs of the community and the environment,” he said.

“Timber harvested from the forest generates incomes and maintains a multi-generational workforce in regional areas.

“However, on the basis of the decision made it was only right that the government would have a proper negotiation with the workers and businesses who are affected and lift the levels of support and compensation provided.”

Negotiations for AFCA have been led by the former general manager Carlie Porteous. The expanded package provides welcome assistance for business owners and workers who had faced significant uncertainty since the government’s announcement in May.

“Forest contracting businesses working in Victoria’s native hardwood forests have spent many years investing in the industry, and their knowledge, skills and equipment were relied upon by the state in times of bushfire crisis,” Ms Porteous said.

“The compensation package now on offer provides these business and workers with some additional security as they transition to future opportunities. Negotiations are ongoing for genuine business compensation or future work packages.

“All future work packages need to provide long term security which means bankable contracts with appropriate tenure. The government had promised work until 2030 and we hope this is reflected in the next round to support contractors.

“Our contractors are multi-generational businesses with extensive knowledge and experience, and they need to be treated fairly and equitably as government policy changes.”

Ms Kerr said that while the VFPA welcomed the additional support for workers, con-tractors, communities, and new regional businesses, it was hard to fathom how the government had treated native hardwood mills who had acted in good faith.

“This is not how a government acts that wants to promote Victoria as a prime location for business,” she said.

“As the main body advocating for wood and wood fibre businesses in Victoria, we will continue to fight for better outcomes for our industry.”

For more information on how to get local support, please visit www.vic.gov.au/forestry or contact the Forestry Transition Hotline on 1800 318 182. To register for the Victorian Forestry Worker Support Program, visit www.forest-works.com.au