A food manufacturer is closing its factory at Altona, with the loss of more than 100 jobs.
Kerry Ingredients is laying off 85 workers from the factory floor.
Another 20 administrative staff will also be laid off.
That means the Altona plant will close next March.
The company says it is shifting production to other factories interstate and in the Asia-Pacific as a result of a manufacturing review.
The National Union of Workers' (NUW) spokesman Tim Kennedy says it is a disaster for staff.
"These are high quality jobs, high-skilled jobs, high-paid jobs, and we're very concerned about the crisis that seems to be taking over manufacturing in this state," he said.
The union's organiser, Julie Morgan believes it is driven partly by cheap labour overseas.
"I feel that part of it with product going overseas for manufacture must be to do with wages," she said.
"These people are on reasonably good wages but nothing outstanding, wages that you'd expect to find in Australia, but they look at going to countries like Malaysia and China to get the product made." Kerry Ingredients says the workers will be redeployed or offered redundancy packages.
The announcement coincides with the latest job figures.
In Victoria the number of people in full time work fell by 11,600.
The July figures shows