AUSTRALIA 
Uncertainty over employment market
Friday, 8 August, 2008
Australian money. (AAP)
Economists say unemployment conditions are expected to continue to soften in the next few months, despite an increasing number of jobs in July.
Total employment was up for the second month in a row in July, and the unemployment rate remained steady at 4.3 per cent.
CommSec equities economist Savanth Sebastian believes employment is a lagging indicator, and recent data has pointed to a sluggish economy.
Mr Sebastian says the way the economy has softened over the last couple of months, it indicates a possible softening in employment in coming months.
350 jobs at risk
Meantime up to 350 jobs are on the line at several wineries and production facilities across southern and western Australia, as international winemaking giant constellation Brands moves to cuts costs.
Former Hardy Wine Company, Constellation will sell vineyards and winemaking facilities and consolidate its bottling operations.
Up to 23 vineyards will be sold in the Great Southern area of WA, Clare Valley, McLaren Vale and the Limestone Coast in South Australia and Sunraysia in Victoria.
Winemaking facilities at Padthaway and the Clare Valley will also be sold, and at Mount Barker in Western Australia.
Constellation's Australian brands include Banrock Station, Hardys, Houghton, Leasingham, Moondah Brook, Renmano, Stanley and Yarra Burn.
The company cited the strengthening Australian dollar, the wine oversupply from 2004 to 2006 vintages, and drought-related production cost increases among its major challenges.
The company's Australian president John Grant said the restructure, which comes after a review of the Australian business, was a response to the difficult global environment.
A 'restructuring workforce'
"As a result of implementing these changes, CWAU will be restructuring its workforce," Mr Grant said today in a statement. "Approximately 350 positions will be impacted by this
restructure and we will provide assistance for all affected employees."
The company hopes to sell the three winemaking facilities as going concerns and if successful, would negotiate for employees to continue in positions under new owners.
If all the assets are successfully sold, redundancies could drop to 30 per cent of the 350 positions hit, a company spokesperson said.
But the job cuts drew the ire of the Liquor, Hospitality and Miscellaneous Union (LHMU).
Union remains concerned
LHMU South Australian State Secretary David Di Troia said the union was concerned for its members.
"We are extremely disappointed with the company announcement today and the uncertainty that this has now created for our members in South Australia," he told AAP.
"At this stage we don't have the full details to be able to assess the impact this will have.
"We will be holding talks with the company representatives at 9am (CST) tomorrow to get some answers."
He said the union would do everything in its power to protect the employment and conditions of Constellation Wines workers and would try to improve redundancy payments to members who lose their jobs.
Source: SBS Staff and Agencies
Total employment was up for the second month in a row in July, and the unemployment rate remained steady at 4.3 per cent.
CommSec equities economist Savanth Sebastian believes employment is a lagging indicator, and recent data has pointed to a sluggish economy.
Mr Sebastian says the way the economy has softened over the last couple of months, it indicates a possible softening in employment in coming months.
350 jobs at risk
Meantime up to 350 jobs are on the line at several wineries and production facilities across southern and western Australia, as international winemaking giant constellation Brands moves to cuts costs.
Former Hardy Wine Company, Constellation will sell vineyards and winemaking facilities and consolidate its bottling operations.
Up to 23 vineyards will be sold in the Great Southern area of WA, Clare Valley, McLaren Vale and the Limestone Coast in South Australia and Sunraysia in Victoria.
Winemaking facilities at Padthaway and the Clare Valley will also be sold, and at Mount Barker in Western Australia.
Constellation's Australian brands include Banrock Station, Hardys, Houghton, Leasingham, Moondah Brook, Renmano, Stanley and Yarra Burn.
The company cited the strengthening Australian dollar, the wine oversupply from 2004 to 2006 vintages, and drought-related production cost increases among its major challenges.
The company's Australian president John Grant said the restructure, which comes after a review of the Australian business, was a response to the difficult global environment.
A 'restructuring workforce'
"As a result of implementing these changes, CWAU will be restructuring its workforce," Mr Grant said today in a statement. "Approximately 350 positions will be impacted by this
restructure and we will provide assistance for all affected employees."
The company hopes to sell the three winemaking facilities as going concerns and if successful, would negotiate for employees to continue in positions under new owners.
If all the assets are successfully sold, redundancies could drop to 30 per cent of the 350 positions hit, a company spokesperson said.
But the job cuts drew the ire of the Liquor, Hospitality and Miscellaneous Union (LHMU).
Union remains concerned
LHMU South Australian State Secretary David Di Troia said the union was concerned for its members.
"We are extremely disappointed with the company announcement today and the uncertainty that this has now created for our members in South Australia," he told AAP.
"At this stage we don't have the full details to be able to assess the impact this will have.
"We will be holding talks with the company representatives at 9am (CST) tomorrow to get some answers."
He said the union would do everything in its power to protect the employment and conditions of Constellation Wines workers and would try to improve redundancy payments to members who lose their jobs.
Source: SBS Staff and Agencies
