The United Workers Union has launched a public campaign to prevent the closure of the James Boag’s Brewery in Launceston, calling on its parent company, Lion, to sell the business rather than shut it down. The move follows Lion’s announcement on June 2 that it intends to cease production in November and move it to the mainland, which would directly affect 42 full-time employees.
According to reports, the union began a community petition and wrote to Tasmanian Premier Jeremy Rockliff, urging him to intervene. United Workers Union Tasmania co-ordinator Amy Brumby told media outlets the brand is a Tasmanian icon and part of the state’s history. The union’s position is that if Lion no longer wishes to operate the brewery, it should be sold to an operator who will keep it running in Launceston.
Lion, a subsidiary of the Japanese company Kirin, stated the decision was based on the brewery running at about one-fifth of its capacity amid a long-term decline in national beer consumption. In a statement, Lion CEO Anubha Sahasrabuddhe said the proposal was “no reflection on the incredible capability, passion and commitment of our brewery team members”.
The company has proposed a support package, including a $500,000 reskilling fund for affected workers and a $500,000 community fund for local organisations. Lion also committed to repaying a $1 million grant from the Tasmanian Government that was used to upgrade the site’s visitor centre, which is expected to remain open.
Premier Jeremy Rockliff described the proposed closure as “extremely disappointing” in a statement released on June 2. The government’s immediate priority, he said, was the wellbeing of the workforce. The Launceston City Council has estimated the closure could impact up to 150 people and cost the local economy $30 million, as reported by other news outlets.
The original story was reported by ABC News.