General News
1 November, 2023
Fonterra strikes deal with workers
FOLLOWING months of negotiations and strike action last month. Fonterra Australia confirmed an in-principle agreement has been reached with the United Workers’ Union to support production workers at Cobden, Stanhope and Darnum sites.
FOLLOWING months of negotiations and strike action last month. Fonterra Australia confirmed an in-principle agreement has been reached with the United Workers’ Union to support production workers at Cobden, Stanhope and Darnum sites.
“Fonterra Australia is pleased that an in-principle agreement has been reached and an offer will be presented to our production workers for their decision,” Fonterra Australia supply chain and operations director Rob Howell said.
“This offer is largely in line with what was previously on the table, following months of negotiations with the union.
“We reiterate that an agreement could have been reached without the union taking industrial action, which unfortunately reduced the pay packets of striking union members.”
The revised offer will now be taken to Fonterra Australia’s production workers for their feedback.
The offer includes:
Better pay: an increase of 12 per cent over three years (five per cent in year one, four per cent in year two, three per cent in year three), plus a $500 sign on bonus;
More Leave options: increase in Sick Leave entitlements, up to five days paid Emergency Services Leave, up to 10 days Domestic Violence Leave, additional Stored Days Off and two days mental health first aid training leave for union delegates; and
Greater protections: improved protections for workers and recognition of Return-to-Work union delegates to support members if injured at work.
“Throughout these negotiations, we have been focused on reaching an agreement that was fair for our people, our farmers, our customers and the regional communities in which we operate,” Mr Howell said.
“We all benefit when we are able to run a healthy business, which is the best way to protect jobs in regional communities.
“We look forward to discussing this in-principle agreement with our people.”
United Workers Union National Secretary Tim Kennedy said he hoped the secure regional jobs won by dairy workers would support a dairy industry which was in crisis, with milk production crashing from 11 billion litres in 2019 to 8 billion litres now.
“The strike action has shown dairy workers are prepared to stand up and fight for their place in the dairy industry, and the importance of the dairy industry in their local communities,” he said.
“We have been working on longer-term planning about how every player – the dairy farmers, the processors, the community and the workers – can be part of a sustainable dairy industry and make sure the dairy industry remains the heartbeat of regional communities.”
Mr Kennedy said the United Workers Union believed part of the answer was making sure multinational companies are listening to their regional communities, and keeping their connections to the local farming industry.
“To do that, we also think it’s important to ensure the price of milk remains fair, and that means challenging the power of the big supermarket duopoly to set low prices when milk supply is high,” he said.
“We are also calling on the Federal and State Governments to include our voice at the table when major issues relating to the dairy industry are considered.”