Australian work laws and costs pushing food manufacturing offshore

Employers have warned that inflexible work laws and high labour costs are adding to pressures on food and grocery manufacturers, many of whom are considering moving offshore.

The reasons cited by BlueScope Steel for cutting its workforce echoed concerns held by companies across the food and grocery sector.

Kate Carnell, the chief executive of the Australian Food and Grocery Council, said that several food and grocery manufacturing operations had already moved offshore.

"Industry is facing a growing list of pressures across Australia's long supply chain, such as high labour prices, less flexibility on wages, higher energy power prices, high transport costs, growth in private label brands and near record global commodity prices for sugar, dairy, cocoa and wheat," she said.

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