Sunrice to reduce it's workforce on the back of a significantly reduced 2019 Crop
- By: "Farm Tender" News
- Cattle News
- Nov 29, 2018
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SunRice today announced it will be reconfiguring its Riverina milling, packing and warehouse operations over the coming eight months to cater for the significantly reduced Riverina rice crop anticipated in 2019. The reduced size of the 2019 rice crop is due to very low water availability and high water prices.
While the 2019 crop size is anticipated to be the second smallest recorded since the start of the Millennium Drought in 2003, carry over volumes will allow the continuation of a reconfigured milling programme throughout 2019.
SunRice remains firmly committed to the Riverina region and the difficult decision to implement changes in operations follows an extensive review process.
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The priority at this time and throughout the process moving forward is the welfare of our employees. SunRice is focused on minimising the number of job losses and is exploring all available options with employees and unions to retain as many people as possible. This includes options to re-locate employees, job sharing and temporary leave. However, regrettably, the changes will mean a reduction in employee numbers across Riverina operations, with the Company anticipating the loss of under 100 positions.
The proposed reconfiguration, which is subject to consultation with employees and unions, will see operational changes and shift restructuring at the Deniliquin and Leeton Mills. These changes will be undertaken in a phased approach to match the production requirements created by the significantly reduced 2019 crop: the first phase will take effect from 2 January 2019 and the final phase will be effective from July/August 2019. These activities will impact operational and support roles in the Riverina. Australian Grain Storage (AGS) will also adjust its working patterns, particularly in regard to mill supply positions. The proposed changes include:
* Phase 1 - Reduction of Deniliquin Mill 2 shift structure from 24/7 to 24/5 will take effect from 2 January 2019
* Phase 2 - Reduction of Deniliquin Mill 1 shift structure from 24/5 to 16/5 will take effect from 31 January 2019
* Phase 3 – Will take effect from end of April 2019 at both Deniliquin and Leeton Mills:
– Deniliquin Mill 1 will cease production and be placed into maintenance
– Reduction of Deniliquin Mill 2 shift structure from 24/5 to 16/5
– Reduction of Leeton Mill shift structure from 24/7 to 24/5
* Phase 4 – Reduction of Deniliquin Mill 2 shift structure from 16/5 to 8/5 will take effect from July/August 2019
Commenting on the operational reconfiguration, SunRice CEO Rob Gordon said “Right now, our priority is the welfare of SunRice employees. This has been a very difficult decision and in no way reflects on the dedication or commitment of our people. We deeply regret the departure of loyal SunRice staff, and we look forward to returning to more normal production levels in the future when we can expand our workforce.
“We understand this is an uncertain time for our employees and their families, and, with this in mind, we have communicated details of the reconfiguration as early as possible. We are also committed to finalising the process as quickly as we are able to provide employees with certainty.
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“Those employees that will leave the business as part of the process will receive their full entitlements. Those employees and their families will also have full access to our Employee Assistance Program and outplacement services.
“The decision to reconfigure Riverina milling operations in 2019 is necessary to ensure a competitive and sustainable business for our employees, growers, shareholders and the communities we support. SunRice remains firmly committed to its Riverina operations and will continue to be one of the region’s largest employers.
“To build SunRice’s operational resilience, a key pillar of the 2022 Strategy has been to accelerate the build-out of our global supply chains. This ensures the business is well positioned to meet growing demand from our customers around the world and can mitigate against fluctuations in crop sizes during times of drought. In low Riverina crop years, SunRice can now flex its offshore supply chains to meet demand and maintain our presence in premium markets. This is an important investment to ensure the future viability of the Riverina rice industry for when normal growing conditions return.”
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