Barossa Enterprises Inc. begins consultation on the future of Clare Valley Enterprises

Barossa Enterprises Inc. has commenced consultation with employees, families and advocates about the potential closure of Supported Employment at Clare Valley Enterprises (CVE).

No final decision has been made, and CVE has not closed. The consultation process will remain open for three weeks, giving affected employees and their representatives an opportunity to ask questions, provide feedback and propose alternatives.

CVE has provided supported employment, friendships, routine and community connection for people with disability in the Clare Valley. However, continuing financial losses and major changes within the regional wine industry have placed the operation under significant pressure.

A cumulative loss of approximately $332,238 has been carried over five years since China introduced hefty tariffs on our wine exports and the disruption of COVID lifted.

Barossa Enterprises Inc. Chief Executive Officer Garry Velt said the organisation could not continue absorbing losses without considering the effect on other services, employment opportunities and the organisation’s broader financial sustainability.

“CVE is much more than a workplace. We understand what it means to the 18 supported people who work there, their families and the Clare community,” Mr Velt said.

“This is a difficult conversation, but we have a responsibility to be open about the challenges facing the operation. No final decision has been made. We will listen to the views of employees and their representatives and genuinely consider any viable alternatives.”

CVE has undertaken work for Clare Valley wineries, although much of its wine-related production work has historically been transported from the Barossa.

The closure of Clare’s principal independent contract-bottling operation has further reduced opportunities to develop a sustainable base of locally generated work. More Clare Valley wine is now transported in bulk to bottling facilities in the Barossa, where it is bottled, labelled, packed, palletised and frequently dispatched directly to distributors, warehouses, retailers or export markets.

Consequently, much of the finished wine does not return to Clare, limiting opportunities for CVE to undertake local packaging or production rework.

Fuel and freight costs are also a major concern. Wine-related products and packaging may need to travel from the Barossa to Clare and then return to the Barossa for storage or distribution. Timber used for presentation boxes is also transported from the Barossa to Clare, with completed boxes then transported back to the Barossa.

These additional journeys increase fuel, freight and handling costs and place CVE at a continuing competitive disadvantage compared with production located closer to bottling and distribution facilities.

The financial and industry pressures are occurring alongside uncertainty arising from pending changes to the NDIS and disability employment arrangements. “For some time, Supported Employment in Clare was subsidised by earnings from other divisions. This can not continue as we now face broader viability challenges” said Mr Velt.

• During consultation, Barossa Enterprises will consider:

• realistic alternatives to closure;

• whether a smaller or different operating model could be viable;

• whether parts of CVE’s operations could continue;

• opportunities for employees to transfer to other suitable work;

• support required for alternative employment; and

• measures to reduce disruption and preserve friendships and community connections.

  
  

Employees will receive accessible information and may involve a parent, family member, nominee, guardian, carer, advocate, union representative or another trusted person.

If closure remains necessary after consultation, Barossa Enterprises will meet individually with each affected employee and their chosen representative. The organisation will investigate reasonable redeployment and alternative employment opportunities and develop an individual transition plan for each employee.

“We will approach this process respectfully and transparently, with the interests and dignity of every employee at its centre,” Mr Velt said.