Hazelwood closure leaves legacy of unstable work for displaced workers

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Hazelwood closure leaves legacy of unstable work for displaced workers

Less than half of the participants in a scheme set up to help former workers at the Hazelwood power station are in full-time work, more than two years after the coal-fired plant's closure.

Key points:

  • Only 306 workers who took part in a job transition scheme are in full-time employment
  • Concerns that some workers have been forced to seek jobs interstate
  • Jobs minister Martin Pakula says "some 2,000 jobs have been created across the Latrobe Valley" Hazelwood closure

The Worker Transition Service was set up to help workers at the power station, located in Victoria's Latrobe Valley, find work and was later expanded to include workers from the nearby Carter Holt Harvey timber mill when it closed months later.

Both shut their doors in 2017, resulting in the loss of more than 900 jobs across the two sites in a region with a history of high unemployment.

Figures released by the Victorian Government show that of the more than 850 workers to take part in the scheme, only 306 are now in full-time work.

A further 307 have found casual work and 35 are working part-time.

In addition, 185 of the Hazelwood participants and 34 from Carter Holt Harvey are unemployed.

The figures were released in response to a question from Member for Morwell Russell Northe, who said he was surprised by the number of workers who are not in full-time employment.

"The number of people, former workers and contractors who are working in non-full-time positions is quite staggering — more than 300 and I'm sure many of those would like full-time work," Mr Northe said.

"I had one gentleman approach me last week who was a former worker at Hazelwood who's just come off four weeks of casual work and now is actively looking for work."

The government estimates about 100 Hazelwood workers retired when the plant closed.

Russell Northe concerned about full-time jobs

The Worker Transition Scheme was designed to give participants skills, training, information and support to find new jobs or start up a businesses.

Mr Northe said the number of workers without full-time work was "staggering" and he hoped they could find full-time employment.

"Hopefully those opportunities arise in our community without having to force people to work in other regions or even interstate," he said.

"I know there's a number of former Hazelwood workers, for example, who have really been forced to look at interstate jurisdictions to find employment and that's really challenging."

'Some 2,000 jobs created'

Following the announcement of Hazelwood's closure, Victorian Premier Daniel Andrews was quick to announce a $266 million transition package to help the region adjust to the closure.

The support package included a number of initiatives, including support for impacted businesses, sport and recreation upgrades and funding to attract an electric vehicle factory to the region, which is due to open in 2022.

In response to Mr Northe's concerns, Jobs Minister Martin Pakula told Parliament last week "some 2,000 jobs have been created across the Latrobe Valley" since the closure of Hazelwood.

"Indeed, the most recent figures would say that the unemployment rate in Gippsland is 3.5 per cent, as against a regional Victoria average of 4.2 per cent," Mr Pakula said.

He also said the rise in casual work was "not an uncommon occurrence across the economy".

Worker Transfer Scheme ends

A key part of the Andrews Government's transition plan was an Australia-first Worker Transfer Scheme, which was set up to create jobs by offering early retirement at the remaining Latrobe Valley power stations.

On Wednesday, Mr Pakula told Parliament the scheme was "ongoing and there is more than a year of it remaining".

On Friday, the government confirmed the scheme closed to new entrants in March this year.

A government spokeswoman said "the Andrews Labor Government will continue to support workers in the Valley through the Worker Transition Service, Gippsland GROW program and our Economic Growth Zone initiatives".

The scheme was designed to create 150 jobs, but created 77 jobs in its first year.

Latrobe City mayor Graeme Middlemiss said the Latrobe Valley community would be disappointed to learn of the scheme's closure.

"We believe there are still workers that need assistance and we would be asking the government to continue with that. Very disappointing if it's been closed off," Cr Middlemiss said.

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