Dairy strike: Fonterra offers pay deal to United Workers Union

Dairy farmers are breathing a sigh of relief after the United Workers Union struck a deal with Fonterra.

Union leaders have declared a statewide dairy factory strike over, with a number of in-principle deals from processors on the table.

The United Workers Union hailed the deals with Fonterra, Peters and Saputo as a “cost-of-living pay increase,” with Lactalis also in the final stages of inking a tentative deal.

More than 1400 workers at 13 factory sites went on strike for 48 hours last week, the largest industrial action in the dairy sector since 1985.

United Workers Union national secretary Tim Kennedy said the strikes were necessary as processors had provided only paltry pay offers prior to the industrial action.

He said a six-day strike of 300 dairy workers from Saturday was avoided on Thursday when Fonterra reached an in-principle deal.

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

“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.

“Also importantly, workers have won measures that are important to them and their communities.

“These measures include five days of paid emergency services leave at both Saputo and Fonterra, allowing volunteers to fight natural disasters occurring in their communities.”

UWU members outside the Fonterra Cobden factory.

United Dairyfarmers of Victoria acting president Bernie Free said the end of the industrial action was a relief to farmers.

“There’s been fault on both sides — with the processors and the unions. It’s a pity it had to get to a strike for them to come to a deal. But at least it’s over,” he said.

“Dairy farmers were the meat in the sandwich. There was a risk of having to pour milk down the drain until one of the processors reached a deal, then the others really had to follow.”

THURSDAY

Fonterra has reached an in-principle agreement with the United Workers’ Union, dodging a potential six-day strike.

The agreement covers production workers at Fonterra’s Cobden, Stanhope and Darnum sites and averts the strike, which was originally scheduled to start Saturday in the event of a negotiation deadlock.

UWU members at Saputo, Peters and Lactalis factories across Victoria also postponed strike plans on Wednesday after pay talks progressed.

Milk bottled at Fonterra’s Cobden factory.

Fonterra operations director Rob Howell said he was pleased an in-principle agreement could be reached without further industrial action.

“This offer is largely in line with what was previously on the table, following months of negotiations with the union,” he said.

“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 in-principle agreement follows a 48-hour strike last week involving 1400 dairy workers across 13 factory sites statewide.

Fonterra management said the agreement included a pay deal of 12 per cent over three years plus a $500 sign-on bonus.

Management also said the deal would include an 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.

“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.