One of Ballarat’s most iconic manufacturers is set to officially cut its ties with the city in 2018, bringing to an end 130 years of operation and leaving about 30 employees out of work.
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Employees of Oliver Footwear were informed of the decision to shift all production offshore at a meeting on Tuesday morning. It is understood the production will be shifted overseas, while logistics and warehousing will move to Melbourne.
The company which was established in Ballarat in 1887 still produces about 30 per cent of its overall output from its Prest Street plant in Mount Pleasant.
A written statement given to employees said the company had undertaken a review of the Ballarat site which deemed shifting manufacturing would “drive greater efficiencies” due to the “aging machinery” at the Mount Pleasant plant.
“This course of action was necessary to help us achieve our business objectives,” the statement read.
Oliver Footwear had remained entirely in family hands until 2010 when it merged with Singapore company Kings Safety Footwear, which was sold to US footwear giant Honeywell a year later.
An employee told The Courier while the decision had saddened staff, it did not come as a surprise. The Courier understands the Ballarat plant’s general manager had been made redundant earlier in the year.
Scroll timeline for the history of Oliver Footwear. Pictures: Love Your Feet More: The Oliver Story
“(The feeling) was more disappointment that we weren't told the truth from the get go,” the employee said. “We could see the writing was on the wall.
“It just seems to be that all of the businesses that have been so much a big part of Ballarat for years are leaving.”
About 15 employees involved in manufacturing are expected to lose their job between June and July next year, while a further 15 workers in warehousing will face the chop later in September.
Workers were sent home at about 2pm on Tuesday to digest the news.
Committee for Ballarat chairman Janet Dore described the news as a “tragedy for Ballarat and the employees”.
“To lose a business like that is devastating because it’s been associated with Ballarat for such a long time.”
A statement from a Honeywell spokesperson said under the proposed plan, the company’s management and sales operations will remain in Ballarat.
While there is some scope for employees to be shifted into other jobs within Honeywell, these would not necessarily be in Ballarat.
“We have begun consultations with the employees’ union representatives to determine how Honeywell will support employees through this transition,” the statement read.
The Textile, Clothing and Footwear Clothing Union was notified of the decision on Friday but was otherwise unaware of the American owner’s intentions.
Another employee said the decision had left Ballarat workers feeling betrayed by the foreign owners.
“We’ve all put in a lot of hard work and it’s a Ballarat icon,” the employee said. “I was proud to say I made Oliver work boots because people would say “I love them”.
“We put in for new machinery because (the Ballarat machines) are past their date but they didn't want to spend the money.”