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21 February 2012
Open Education Resources
The Future Newspaper

Expansions endanger Australian jobs

By Tali Fisher

Foreign Affairs Editor

Expanding Naturally Baking may mean job losses for Australian workers.

The success of local firm Naturally Baking may lead to job losses among workers at its Australian owner, Overbaking Ltd, reports Tali Fisher.

Since the giant baking conglomerate Overbaking took over Naturally Baking five years ago, it has expanded to become one of the largest providers of organic baking goods in Australasia .

Australian workers at Overbaking were at first pleased by the takeover of a rival company. But Overbaking has now shifted much of its specialty work to Naturally Baking, meaning job losses or relocations for families in Australia .

Local workers have expressed sympathy for their Australian colleagues whose jobs have changed as a result of the global market in which the baking industry now operates.

But at a time when Naturally Baking is facing new challenges as it moves to more sustainable processes, all employees should remember that globalisation is a challenge for everyone, one worker warned.

Overbaking’s takeover of Naturally Baking demonstrated the potential benefits of globalisation to locals. A small organisation was absorbed into a global company, and benefited from increased growth and employment. Other local benefits included sponsorships, scholarships and a commitment to sustainable business.

Initially, local people in the region worried about what the takeover would mean for local workers and the community. While Naturally Baking was not a large employer, it provided a number of jobs and people in the area felt a sense of ownership towards this successful company.

Since the takeover, the growth of Naturally Baking has clearly benefitted the region, with the number of local jobs increasing substantially.

A spokeswoman for Overbaking said the company was a good employer and, as part of its social responsibility policy, had always taken care not to cut jobs without taking into account the wider implications of these cuts. However, some relocation had been inevitable as the company worked to ensure survival in the global economy, she said.

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