GORDON and Gotch will close its Lavington factory at the end of the month, leaving 35 Border workers without a job.
Staff at the magazine returns centre were emotional and many burst into tears after being told they would lose their jobs at a company meeting.
A factory worker, who asked not to be named, said the announcement came with no warning and was a “slap in the face” for he and his colleagues.
“The managing director came straight out with it at a meeting and everyone just started crying and bawling,” he said.
“We had no idea it was coming.
“The only hint we had was that a few family members of management, who work in the factory, started looking for new jobs five weeks ago.”
Gordon and Gotch managing director Craig Davison said 22 full-time employees would be made redundant but The Border Mail understands 13 more casuals have also been told they are no longer required.
Mr Davison said the company had been assessing all its outlets over the past two years and decided its Lavington factory, the only centre designated to collect returns, was no longer economically viable.
“The number of returns in the magazine industry is declining and our ability to invest in technology to turn the Lavington plant into a state-of-the-art facility does not make economic sense,” he said.
“Declining magazine returns volume has prompted our decision to outsource the work to a company in Melbourne that specialises in reverse logistics and are better equipped to handle the declining volumes.”
Mr Davison said he held one-on-one meetings with all 22 staff to explain the reasons behind the closure, outline their entitlements and make them aware they could apply for a position at the Melbourne company where the work was being directed.
He would not name the Melbourne company.
He said Gordon and Gotch would provide extra training between now and July 31, with 50 options ranging from basic computer skills to customer service.
A company specialising in support services for redundant workers would also offer assistance including counselling, financial advice and job-seeking skills.
The factory worker who contacted The Border Mail said this was little consolation for the workers.
“Some people have been here 12 or 15 years and the majority are 50 or 60 years old, so it’s not going to be easy for them to get another job,” he said.
“We’re just hoping the community hears about it all and can lend a hand.”
Gordon and Gotch has been operating on the Border for about 17 years.
The company does not own the factory in the Dallinger Industrial Estate.