Moira Shire Mayor Libro Mustica said he spoke to a manager at the Cobram factory, who told him a line was being closed as it was no longer productive.
“They’re basically shutting down a line that is not productive anymore, it doesn’t meet the standards anymore,” he said.
“It’s very old ... it’s so old my father worked on it 40 years ago.”
Cr Mustica said he was told the affected staff would be rehired to new positions within the factory and placed in different departments if needed.
“All the staff on that line ... they’ll be upskilled if they need to be,” he said.
In a media release from February 9, Saputo Dairy Australia said it had made plans to streamline operations at its Cobram and Maffra sites.
The IWS area at the Cobram factory is set to close in June 2022, with the work moving to an “alternative manufacturing arrangement”, but the company did not say what the arrangement was.
It also said the measures were aimed at improving its operational efficiency and manufacturing footprint.
“We are exploring redeployment opportunities for the limited number of employees impacted,” a statement read.
“Site management are working with affected employees at both sites to discuss the range of options and support available to them during this time.”
Saputo did not respond to requests for further information.