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Darren Chester demands explanation after sudden Yarram sawmill closure cost over seventy jobs

Federal MP Darren Chester calls for clarity after Yarram AKD sawmill closure, which unexpectedly cut over 70 jobs, threatening local families and prompting demands for full employee entitlements.

By news@gippsland - 19th November 2025 - Back to News

Federal Member for Gippsland Darren Chester says employees at a Yarram sawmill are owed an explanation from senior management after losing their jobs without warning. Mr Chester said the loss of more than 70 direct jobs was devastating for the community, with the flow-on impact likely to result in economic hardship for dozens of families.

Darren Chester said losing over 70 jobs devastated the community, prompting him to seek alternatives and ensure full employee entitlements

Closure sparks anger

Mr Chester said, "Without any warning, the workers at AKD sawmill in Yarram were told their jobs are gone, less than six weeks from Christmas. The workers and our community deserve a better explanation than a short media release from the company, which claims a downturn in the housing sector has led to the closure. I have requested a meeting with senior executives who didn’t even bother to contact me prior to making today’s announcement."

According to the AKD statement: "Today, we have informed employees at our Yarram sawmill that the site will be closed before the end of November, with production stopping from today. This difficult decision is a result of the challenging market conditions that AKD continues to face, driven by the sustained slowdown in housing construction in Australia. Broader economic conditions are also contributing to the uncertainty in our industry, with demand remaining soft for both structural and non-structural softwood timber products."

Mr Chester said he wanted to know what other options were considered instead of a full closure and would be seeking a guarantee that employees would receive their full entitlements.

Pictures from Darren Chester MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  The Nationals urge the Allan government to collaborate with Nyora community and education stakeholders to establish a local early childhood centre, improving access, school transitions, enrolments, and long-term community sustainability.
• Danny O’Brien calls Labor’s free November travel scheme a stunt, with Gippsland commuters disrupted
  Gippsland commuters faced 19 days of disruptions despite Labor’s free-travel November scheme, with ongoing delays, confusion, and bus replacements highlighting mismanaged rail projects and continued frustration for passengers.
• Martin Cameron says Yallourn job cuts devastate workers and mark first blow in Power Station closure
  Up to 40 Yallourn Power Station jobs will be cut by 2025, sparking concern from Martin Cameron over Labor's failure to support the Latrobe Valley through the energy transition.
• Stewart Road Bridge reconstruction in Kernot approved, $1.768M federal funding restores vital community infrastructure
  Bass Coast Council’s Stewart Road Bridge reconstruction in Kernot approved, receiving $1.768 million federal funding, restoring safe access, supporting local residents, industry, emergency services, with tendering expected early 2026.