Construction and mining equipment manufacturer Caterpillar will cut 280 jobs from its 700-strong Tasmanian workforce by the end of the month, a federal MP says.
Caterpillar's Tasmanian base is at Burnie, in the state's north west, where the local federal member is Sid Sidebottom.
Mr Sidebottom said on Tuesday the international machinery manufacturer, which announced in January it was cutting 20,000 people jobs worldwide, had told him of the Burnie cuts.
Prime Minister Kevin Rudd is expected on Wednesday to tour the Burnie area, which is facing further mass job losses.
Premier David Bartlett said he will tour the area as soon he can.
In the meantime his government will be doing all it can to help skill the displaced Burnie workers so they can find other jobs.
Mr Sidebottom said Caterpillar told him "280 workmen would be losing their jobs in the next couple of weeks".
"About 360 workers will be retained to continue the work they have orders for."
Mr Sidebottom said the fate of those 360 workers after the orders were filled was unknown at this stage.
"These job losses are quite devastating for the area but it's a very resilient region with a diversified economy.
"But there are so many other businesses here that hang off Caterpillar, which has been a very successful business and we hope will continue to be in the future.
"It's been affected by the worldwide downturn and we unfortunately are going to suffer the consequences of that."
Mr Sidebottom said up to 500 more jobs could go in the area from Australian Paper's pulp mills at burnie and Wesley Vale.
A review on the viability of those two commercially troubled mill's is due in June.
"It's a bit like a sword of Damocles hanging over our head but those mills have been problematic for some time," Mr Sidebottom said.
Meanwhile up to 100 jobs at the King Island abattoir hand by thread, also in Mr Sidebottom's Braddon electorate.
The Tasmanian government has stepped in with $500,000 to prop up the abattoir and keep those people in work while its new owner completes a performance review.
Swift Australia, part of the worldwide conglomerate JBS Swift & Company, two weeks ago announced a suspension of operations at its King Island abattoir, pending a review.
The majority of the abattoir's 100 employees returned to work on Monday, after being laid off on March 24, following talks last week between Swift and the state government.
Mr Sidebottom also said more than 200 jobs had been lost this year in his electorate's west coast mining industry.
AAP
