Hundreds of dairy workers from the NSW Northern Rivers are set to lose their jobs as Norco says a $35 million government grant is not enough to rebuild the flood-damaged ice cream factory.
A $34.7 million grant, jointly-funded by the Commonwealth and state government, has been labelled inadequate by the company, which says it is now on track to lay off up to 240 workers.
The South Lismore facility on the banks of the Wilson River was hit by catastrophic flooding earlier this year.
Prime Minister Anthony Albanese said he hopes the company, which has received more than $34 million in taxpayer funds, can find a way to look out for its workers.
"I'll continue to work with (NSW) Premier (Dominic) Perrottet on these issues," he told reporters on Wednesday.
"I realise that the Northern Rivers have suffered greatly, including our businesses, but we have provided substantial support."
The company was on the brink of sacking 170 workers in July, before federal Emergency Management Minister Murray Watt stepped in with a 10-week rescue package.
Some $2.7 million in funds was designed to give Norco time to apply for further funding from the $59.3 million Anchor Business Support Grant, to help rebuild in the flood-ravaged region.
The wage support will run out on Friday next week, when workers are expected to be stood down.
Norco Chief Executive Michael Hampson said when the funding was announced he was relieved the workers' jobs had been saved.
However, some 10 weeks later, an offer from the federal government of more than $34 million has been described as inadequate to save the ice cream factory.
A Norco official on Tuesday said the company was disappointed three separate project options submitted to the program were not supported by the government.
"While we welcome and appreciate the $34.7 million from the governments, it falls well short of what we need to safeguard the factory's future," they said.
The total cost of the devastating Lismore floods to Norco is estimated at $141.8 million, and up to 240 workers could lose their jobs permanently if further funding is not secured, the official said.
Costs included restoring facilities to pre-flood levels, clean-up and repair, workforce and inventory costs, and flood mitigation works.
"We continue in positive dialogue with the government and remain hopeful that we can secure a better outcome for our workforce, our farmers, and the broader Lismore community," the Norco official said.
"Norco has been part of the Northern Rivers community for more than 127 years, and with increased support from the governments in these rebuild efforts, we hope to be here for another 127 years."
An urgent meeting between Norco and worker representatives has been scheduled for Thursday next week, after three separate unions urged the company to be transparent about employees' futures.
Now grants had been secured it was incumbent on the company to be open about its plans, the Australian Manufacturing Workers' Union, the Australasian Meat Industry Employees Union, and the Electrical Trades Union said.
"Put yourself in the shoes of the workers at Norco. They've just had problem after problem, uncertainty after certainty since the floods in February," secretary of the NSW and ACT branch of the AMWU Cory Wright told AAP on Wednesday.
Norco workers had done the "hard yards" and remained loyal, stayed in the local area and deserved honesty from the company, Mr Wright said.
"Workers need a level of certainty and they need it now."
