Strike hits Coles but action off at Kellogg’s

Coles faces strike in Sydney this week, but industrial action at Kellogg’s has been called off after breakthrough.

Outside shots of the Kellogg's factory at Botany. Picture: AAP

Coles will be hit by strike action in Sydney this week, but planned industrial action at Kellogg’s has been called off after the company improved its pay offer to workers.

Coles said workers at its Smeaton Grange distribution centre in Sydney would strike for 48 hours from Thursday after the United Workers Union rejected the supermarket giant’s offer of a 3.5 per cent annual pay rise.

Coles said the union was demanding a 5.5 per cent annual wage increase “despite relatively flat wage growth across all sectors”.

Coles has also offered to increase redundancy provisions from a maximum of 52 weeks’ pay to a maximum of 80 weeks’ pay for involuntary redundancies resulting from the expected closure of the site in 2023.

The company said the workers had rejected this offer and demanded redundancy payments up to the equivalent of two years’ pay.

“To ensure that our stores can continue to offer a full range of products for our customers through the Christmas and New Year period, we have made alternative arrangements for products ordinarily distributed from the Smeaton Grange distribution centre,” a Coles spokesman said.

It is understood the existing hourly base rate at Smeaton Grange is $37.99, the highest of any Coles distribution centre.

UWU director of logistics Matt Toner: said Coles could not complain about their workers’ request for a modest increase when its CEO increased his remuneration by 29 per cent in one year.

“The company has been making mega-profits on the back of its essential workers throughout the pandemic,” he said.

“Workers at Coles Smeaton Grange are taking action on Thursday because they’re fighting for their right to have a job, and not be tossed to the curb by a greedy corporation. “

Mr Toner said Coles was building a new automated warehouse but had refused to give its skilled and long-serving warehouse workers in Smeaton Grange an opportunity to be redeployed to the new warehouse.

“Some of these workers have been loyal to the company for over 30 years,”. he said

“The only reason Coles is ending the careers of its loyal workers is the mindless pursuit of profits. That being the case, there‘s no reason why workers should not be provided with a little extra dignity when their jobs are ended by Coles.

“With one of its largest warehouses in NSW out of action, it‘s hard to see how there will not be disruptions to supply especially over this busy Christmas period.”

Speaking about the action at Kellogg’s, the union had proposed a “lightning strike” on Wednesday, prompting a company threat to lock out workers.

On Tuesday night, the UWU said the strike had been called off after an improved offer was made by the company.

The Botany site manufactures and packs brands including Corn Flakes, Rice Bubbles, Nutri Grain and Sultana Bran.