48-hour strike to disrupt dairy industry

Striking dairy processing workers will place pressure on production of milk, ice cream, cheese and yoghurt.

United Workers Union national secretary Tim Kennedy.

More than 1400 dairy processing workers will strike for 48 hours this week, with their union warning the industrial action will cause “massive disruption” to the Victorian dairy industry.

Production of milk, ice cream, cheese and yoghurt will come under pressure as the United Workers Union members at sites operated by Saputo Dairy Australia, Fonterra Australia, Peters Ice Cream and Lactalis strike on Wednesday and Thursday.

The workers are seeking a 15 per cent pay rise over three years, and the union has warned the strike has the potential to impact domestic milk supplies and result in companies having to dump milk.

UWU national secretary Tim Kennedy said the workers did not take the action “lightly”, and it followed the refusal of some of the world’s largest dairy companies to offer fair wages and improve working conditions amid rising living costs.

“Dairy workers have been dedicated, especially during the pandemic, with some even agreeing to wage offers as low as 1.5 per cent to support their companies,” he said.

“But with the soaring cost of living, they believe it’s time for change. They’re not even asking for a wage increase that matches inflation, just 5 per cent or 6 per cent that gets them a little closer to being able to keep up with skyrocketing costs.”

Fonterra manufactures a range of well-known products including Woolworths’ home-brand milk and cream, Western Star butter and the Perfect Italiano cheese range. It has offered pay rises ­totalling at least 10.5 per cent over three years plus a $1000 sign-on payment. Fonterra Australia supply chain and operations director Rob Howell said the company was “disappointed that the union has encouraged some of our people to take industrial action, but respect their right to do so”.

“We have a fair and reasonable offer on the table that would mean better pay, more leave options, and greater protections for our workers, who currently receive more than 30 per cent above the award wage,” he said.

“We were also committed to our people during Covid-19, and provided them with pay increases of 2.5 per cent, 2.5 per cent and 2.75 per cent in 2020, 2021 and 2022, respectively.”

Fonterra manufactures a range of well-known products including Western Star butter. Picture: Dannika Bonser

Mr Howell said Fonterra had “mobilised a cross-company team to ensure that there are minimal disruptions as a result of this ­industrial action”.

“Our farmers will continue milking, and we will be doing everything we can to ensure that their precious, perishable milk can be collected and not wasted,” he said. “We are confident that the supply of our dairy products will continue during the industrial ­action.”

Saputo produces Coles cheese products, Cracker Barrel, YoPRO yoghurt and a range of Devondale products including long-life milk and cheese. It has offered pay rises of 10.25 per cent to 11 per cent. .

Saputo Dairy Australia director of operations Gerard Lourey said the company was “committed to continuing negotiations in good faith to reach an agreement for our valued workers”.

Retail products made by Peters Ice Cream include Drumsticks and Connoisseur. The company has offered 10 per cent over three years. Mr Kennedy said workers were also seeking: personal leave ­accommodating their 12-hour shift pattern, community service leave for aiding in natural disasters, and community consultation clauses “ensuring corporate ­accountability”. “While milk prices have surged, benefiting farmers and boosting processor profits, the workers processing the milk have yet to see their share,” he said. “Notably, New Zealand dairy giant Fonterra grew their profits by 170 per cent in the 2023 financial year.”