Rolling strikes threaten Victoria’s dairy products

Production of milk, ice cream, cheese and yoghurt faces disruption as 1400 dairy workers across Victoria consider indefinite rolling 24-hour strikes.

United Workers Union national secretary Tim Kennedy.

Production of milk, ice cream, cheese and yoghurt faces disruption as 1400 dairy workers across Victoria consider indefinite rolling 24-hour strikes, including a 48-hour stoppage, in support of a 15 per cent pay rise over three years.

United Workers Union members at 12 sites operated by three major companies – Saputo Dairy Australia, Fonterra Australia, and Peters Ice Cream – have voted in support of industrial action, including unlimited 24-hour stoppages, and will meet next week to consider walking off the job for two days this month.

UWU national secretary Tim Kennedy told The Weekend Australian the strike action had the potential to impact domestic milk supplies and could result in companies having to dump milk.

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 “depending on the length of industrial action, there may be an impact on the fresh milk supply, but (we) anticipate this will be minimal”.

“We are disappointed that the union is encouraging workers to take industrial action, particularly when they are yet to meet with all of the union members at our sites, which risks this precious, perishable food source for Australians, but respect their right to do so,” he said.

While Mr Howell said the company had good inventory levels of butter and cheese, there could be an impact on the fresh milk donations Fonterra makes to Foodbank and the Warrnambool Foodshare. Fonterra donates close to 10,000 litres of milk every week to help needy people across Victoria.

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. A Saputo Dairy Australia spokesperson said the company was “committed to continuing negotiations in good faith to reach an agreement for SDA’s valued workers at our sites”.

Retail products made by Peters Ice Cream include Drumsticks and Connoisseur. The company, which declined to comment, has offered 10 per cent over three years.

Mr Kennedy said a 48-hour strike was “definitely on the cards” and if no agreement was reached there was a “real prospect” the rolling stoppages could continue indefinitely if that was the position taken by workers

“There’s no doubt there is potential to have an impact on domestic milk supply,” he said. “It will have an impact on Peters ice cream.

“It’s not good when milk is dumped. We would say that’s why it’s important for the company to address these legitimate claims from their workers. For them not to, it’s reckless for the company to put itself in a position to dump milk.”

He said the pay offers from the companies over three years were a long way from the 15 to 16 per cent sought by the workers.

“Workers don’t make this decision lightly,” he said. “Dairy workers have been grinding day in and day out, especially during the pandemic, where some sites agreed to accept wage offers as low as 1.5 per cent as a favour to the company. Now, as the cost of living soars, these workers are saying ‘enough is enough’.”

Meanwhile, maritime union members have started strike action at DP World and unions threatened to resume strikes at Chevron’s Gorgon and Wheatstone LNG facilities in Western Australia.