Staff set to lose their jobs at the Don Smallgoods factory in Altona are victims of worsening economic conditions, Premier John Brumby says.
- Economic growth set to slow after 15 years - Inflation, oil prices, hitting economy - Workers will find new jobs: Brumby
"We've had the best part of 15 years of continuous economic growth ... it's just going to be probably slower than it's been in the past," Mr Brumby told ABC radio.
The combined effect of inflation, oil prices, interest rate rises and the meltdown in the US financial markets all made for "a more difficult environment", he said.
But he said the fundamentals in Victoria, including investment in economic infrastructure, were better than they had been at any time in the past 15 years and would see the state through difficult times.
Mr Brumby believed all factory workers at Altona would be able to find another job in Victoria.
"They will," he said when asked.
The Altona factory, which employs 420 people, made an $80 million loss in the last eight to nine years, chief executive Mel Sutton said yesterday.
A Don factory at Spearwood in Western Australia will also axe 220 jobs, shutting down by April 2009.
Parent company George Weston Foods will concentrate all production at its Don KR Castlemaine operation in the central Victorian town of Castlemaine by 2010.
The company has not yet indicated whether Altona staff will be offered jobs at Castlemaine.
