Manufacturer CQMS Razer will stand down most of its Maryborough foundry workforce from July 1 to August 13.
The company’s chief David Haslett said a slump in the mining sector is responsible for the job cuts, and added the company’s Adelaide manufacturing plant would also be shut.
While it did not reveal how many employees would be stood down to The Chronicle, the CFMEU believes 50 to 60 staff would be affected.
Haslett said the Fraser Coast would gain from shutting down the Adelaide plant, as manufacturing operations will be shifted to Maryborough in the next four months.
This should create an additional 20 jobs.
“The outlook for mining in Australia is still uncertain as the sector continues to focus on reducing costs,” Haslett said.
“The consolidation of our Adelaide facility into our Maryborough operations shall reduce our manufacturing cost base, provide employment security and reconfirm our long-term commitment to manufacturing in Maryborough.
“We regret the need for the stand-downs in Maryborough and the closure of Adelaide.”
The Adelaide plant will shut on August 2, and manufacturing will commence in Maryborough from mid-October, Haslett said.
CQMS Razer cut 60 jobs earlier this year, adding to the workforce reductions it made late last year.
Workers were then forced to take leave over Christmas when the company shut down to curb losses.
When workers returned to work after the Christmas break they were told to choose between a four-day week and 30 to 40 job losses.
They chose the four-day week but the company made further losses after the January floods forced it to cease operations.
CFMEU regional organiser Laurie Genrich said workers have not yet voted on whether to agree to a reduced four-day week.
He added the union wants a list of all products being made in its China plant and delivered back to Australia.
All products that could be manufactured in Maryborough should be produced locally, he said.