Anger and concern has erupted from a decision to reduce operations at the Deniliquin and Leeton rice mills this week, but it’s not targeted at the global food giant.
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With a reduction in shift hours due to “sustained low rice supply driven by dry conditions and current water policy settings”, it had sparked renewed debate about the future of irrigation-dependent industries across the Riverina.
State and federal politicians, and other community leaders, have taken aim at the Federal Government in particular.
They say the government has failed to heed warnings over many years that water policy does little to support productive industries like rice.
They also suggest the escalating cost of irrigation water, as a result of those policies, has played a role.
Employees were informed this week that revised shift structures will be introduced at both sites as the company seeks to align processing capacity with current and forecast rice supply levels.
Under the changes, the Deniliquin mill will move from a 24-hour, five-day operation to a single eight-hour shift, five days a week.
At Leeton, both milling and packing operations will transition from a 24-hour, five-day structure to 16 hours a day, five days a week.
While SunRice has emphasised that no final decisions have been made regarding workforce impacts, and that a formal consultation process is now underway with employees, United Workers Union director of food & beverage Mel Gatfield has expressed concern.
“This decision would have significant consequences not only for workers and their families, but also for the regional communities that rely on the industry for jobs, economic activity and long-term prosperity,” she said.
“This proposal puts good, secure jobs at risk in communities that can least afford to lose them.
“Our members have done everything asked of them, including advocating at every level of government for practical solutions that support the future of the industry. They deserve certainty and investment in their future, not job cuts.
“The United Workers Union is working closely with affected members and will continue to press both SunRice and government to find a solution that protects production, safeguards jobs and keeps the Riverina’s rice industry sustainable and strong for the long term.”
A SunRice spokesperson said the company remained focused on supporting its workforce while responding to challenging supply conditions.
“These changes include revised shift structures at our Deniliquin and Leeton milling sites to better align operations with current and forecast rice supply levels,” the spokesperson said.
“As a result of these changes, we have commenced consultation with employees on the proposed workforce impacts across Deniliquin, Leeton and AGS operations.”
The spokesperson said the company recognised the significance of the announcement for workers and the communities that rely on the mills.
“We acknowledge the significance of this announcement for our people and the local communities,” they said.
“Our focus is on retaining as many employees as possible, including exploring redeployment opportunities where feasible.”
The company confirmed it would share the outcomes of the consultation process with affected employees before making any broader community announcements.
“As always, we are committed to engaging openly, constructively and transparently with our people throughout the consultation process,” the spokesperson said.
SunRice also pointed to broader challenges facing the rice industry.
“We continue to advocate to government on the adverse impacts of water policy settings on the Riverina rice industry, while closely monitoring seasonal conditions and crop outlook.”
Federal Member for Farrer David Farley said SunRice’s forced decision highlighted the real-world consequences of Federal Government water buybacks under the Murray-Darling Basin Plan.
“Water has become prohibitively expensive in the basin thanks to buybacks, and this is despite the fact that more than enough water has been recovered for environmental flows under the Basin Plan,” Mr Farley said.
“Employers like SunRice can’t maintain their workforces at current levels if they have no crops to process, and this is a direct result of water prices going higher thanks to government buybacks.”
Mr Farley argued the latest changes echoed similar challenges faced by the company in previous years.
“This isn’t the first time this has happened; in 2019, the company was forced to cut 100 jobs in the Riverina thanks to water reform policies,” he said.
Mr Farley has called on the Federal Government to release surplus environmental water to irrigators ahead of the spring planting season.
“Even unions were in Canberra last week lobbying for more water in order to protect jobs in Farrer,” he said.
“SunRice has indicated this would be a positive step. They’ve made it clear the Basin Plan is not meeting its legislated requirements to optimise social and economic outcomes.”
Mr Farley said the government has an opportunity to restore confidence in irrigation communities.
“The Federal Government has a chance to stop this buyback bungle and restore confidence to Farrer and irrigators across the country. (The) announcement by SunRice shows that need is more critical than ever.”
NSW Member for Murray Helen Dalton also criticised both levels of government, describing the milling reductions as a direct consequence of “long-running water management failures”.
“The NSW Government and the Federal Government are absolutely to blame for this loss of work and loss of food production in the Riverina,” Mrs Dalton said.
“Failed government water policies have driven up water costs while also cutting access to water for producers.
“SunRice didn’t want to make these cuts to production, but they have no choice.
“Failed Government water policies have forced their hand.”
Mrs Dalton warned that the impacts extended beyond individual businesses and threatened the future of rural communities throughout the region.
“We can no longer allow governments to destroy our rivers and the rural communities that rely on them,” she said.
Calling for a major investigation into water reform, Mrs Dalton urged the establishment of a federal inquiry.
“We need a Royal Commission into water, right now,” she said.
“We must understand just how badly water policy has failed us for the last 20 years, if we are going to sort this disastrous mess out.”