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Dairy strike averted as workers win 12 per cent pay rise

About 1400 dairy workers secure pay rises of 11 to 14 per cent over three years.

United Workers Union national secretary Tim Kennedy hailed the dairy industry pay deals.
United Workers Union national secretary Tim Kennedy hailed the dairy industry pay deals.

Workers at major dairy processor Fonterra have won a 12 per cent pay rise over three years after the company struck an in- principle agreement with the United Workers Union that averts a threatened six-day strike from Saturday.

The Fonterra settlement and new agreements at Saputo and Peters Ice Cream means 1400 dairy workers across Victoria will receive pay rises of between 11 and 14 per cent over three years, with most getting a 5 per cent increase in the first year.

It follows what the UWU called the “largest dairy strike in living memory” when two-day strikes last week disrupted supplies of dairy goods, caused limits on milk at some supermarkets and had farmers reporting thousands of litres of milk being dumped.

Fonterra manufactures a range of well-known products including Woolworths’ home- brand milk and cream, Western Star butter and the Perfect Italiano cheese range.

The company initially offered pay rises totalling 10.5 per cent over three years plus a $1000 sign-on payment. The union sought a 15 per cent pay rise over three years.

Under the agreement, workers will receive annual pay rises of 5 per cent, 4 per cent and 3 per cent and a $500 sign-on bonus.

The Fonterra workers also secured improved entitlements, including increased sick leave, up to five days paid emergency services leave, up to 10 days domestic violence leave, and two days mental health first aid training leave for union delegates.

UWU national secretary Tim Kennedy said the first-year pay rise doubled the 2.5 per cent dairy workers received as they helped their companies out during the pandemic.

“These are working people in regional areas who have shown great courage in standing up to large multinational dairy companies,” he said.

He said the fight gave a national platform in the battle for profitable companies to pay a fair share of their profits to help workers address the cost-of-­living crisis.

“Dairy worker pay rises of up to 14 per cent over three years dwarf previous company offers as low as 8.25 per cent before workers went on strike,” Mr Kennedy said.

Fonterra Australia’s supply chain and operations director, Rob Howell, said the company offer was “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,” Mr Howell said.

Original URL: https://www.theaustralian.com.au/nation/dairy-strike-averted-as-workers-win-12-per-cent-pay-rise/news-story/b3e9d17aa2008e0bf1be31ad103110c9