SWISS multinational Nestle has not ruled out paying the Inverell community $10 million in compensation for closing the town’s Supercoat Plant at a cost of 170 jobs.
The compensation demand was made by Inverell mayor, Cr Barry Johnson, on Wednesday.
Nestle bought the Supercoat factory, one of Inverell’s largest employers, 18 months ago in March 2007.
The closure will be finalised by March 2008.
The loss of 170 jobs – 58 of them full-time – is expected to have a huge flow-on effect on the
community.
Nestle general manager David Grant said all Inverell Supercoat employees had been notified of their entitlements and would be offered redundancy packages.
In a bid to quash rumours the company was getting ready to pack up and leave in the near future, Mr Grant said production would continue “as normal” until next March.
This appears to contradict a statement by Nestle on Wednesday that some redundancies could take effect before the final closure date “as production is transitioned to Blayney”.
Nestle is relocating Supercoat production to its plant at Blayney near Bathurst in central western NSW.
Mr Grant did not rule out the possibility Nestle may consider the request for compensation in an interview with The Leader yesterday.
Member for Northern Tablelands, Richard Torbay, has organised a crisis meeting for next Monday.
It is to be attended by State Government representatives, Nestle, local businesses and
stakeholders.
Mr Grant said many topics would be brought up at the meeting.
“We’re very happy to participate in these discussions,” he said.
Although the factory’s community participation was limited to supporting the Inverell Field Day, where TV vet Dr Harry Cooper made an appearance, and manning stalls at school fetes, the ripple effect from the closure has residents worried.
Inverell mayor Barry Johnston said the biggest concern was the employees’ futures.
“They’ve been offered some form of (redundancy) packaging, but no package will replace the opportunity to have a job in your home town,” Cr Johnston said.
“Any discussions that we have with our local member, the company and possibly the Federal member would be based around what opportunities we can find to provide those people with an opportunity of another job and the ability to maintain their lives and their families in our community.”
He said Nestle had misled the town.
During a meeting with Mr Grant on Tuesday afternoon he had made it clear he was extremely disappointed.
The closure announcement had come as a surprise given all previous information from Nestle had indicated the factory’s future was secure.
“The plant at Inverell was efficient and economical – it was the most cost-effective plant that they had. In other words, everything was excellent,” Mr Johnston said.
“I believe it was an element of misleading us into believing that the plant had a future with Nestle and Inverell.”
He said the town was also worried about how its industries, in particular the transport industry, would be affected.
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