Saputo and Transport Workers Union broker deal, ending strike

Dairy tanker drivers have reached a deal, ending one industrial stand-off. But another involving milk processing plant workers remains up in the air.

A peace deal has been reached between dairy tanker drivers and Saputo after a 48-hour strike in Gippsland this week.

More than 150 drivers will resume normal operations, following confirmation of the deal by the Transport Workers Union on Friday afternoon.

In the early hours of Tuesday morning, tanker drivers went on strike in the Gippsland region but milk was picked up from most farms by non-unionised drivers as well as operators from outside the region.

However, there were some reports of dairy farmers forced to dump milk, as their vats did not have the capacity to contain multiple sessions worth of milk.

TWU assistant secretary Mem Suleyman said the negotiation breakthrough with Saputo was a historic deal for drivers.

“The negotiations have been tense and challenging at times,” he said.

“These discussions went into the evening but through the high-level talks a landmark deal was secured that will ensure we protect regional jobs.

“Our members will now have the opportunity to vote on this historic deal, and we are confident that this will be overwhelmingly supported.”

Saputo has been contacted by The Weekly Times for comment.

A separate industrial relations dispute involving 1400 United Workers Union members at 13 dairy processing sites statewide remains unresolved.

THURSDAY EVENING

More than 1400 dairy workers at Fonterra, Saputo, Lactalis and Peters Ice Cream will return to work Friday morning, ending a 48-hour statewide strike.

But factory workers have vowed to strike again, if a new pay deal cannot be struck.

Victorian Premier Jacinta Allan has indicated a deal may soon be inked between the unions and processors, although both appear to be holding out for the time being.

United Workers Union national secretary Tim Kennedy said “it was time for the companies to come to the table with a fair offer”.

“Dairy workers have had enough of the disrespectful way these companies have been treating them, after workers agreed to low wages to help the companies out during the pandemic,” Mr Kennedy said.

“After more than six months of negotiations the offers of these companies still fall far below cost of living increases.

“There will now be talks with the major dairy processors to see if they are finally willing to pay dairy workers what they need to keep up with the cost of living in their regional centres.

“As always, it will be up to members to decide what action to take next, and they have already voted for the option of rolling 24-hour stoppages in this dispute.”

Saputo’s Gippsland tanker drivers also ended their 48-hour strike at 3am Thursday, with Transport Workers Union state secretary Mike McNess saying they would meet Saputo representatives for further discussions on Friday morning.

Australian Dairy Products Federation president John Williams, representing processors, said “it was extremely disappointing that the TWU and the UWU chose to strike during the peak milk production period in Victoria.

“However, we are pleased to say that all dairy processors managed this interruption to their normal operations well.

“Dairy processors were able to work with their customers and adjust production levels and deliveries accordingly, to ensure ongoing and consistent supply of dairy products for their consumers to enjoy. These contingency plans were successful.

“ADPF is aware of reports of some supermarkets introducing rationing on fresh milk, however there were also reports from major supermarkets that this was not required.

“We are pleased that TWU workers who took industrial action in some parts of Victoria have now returned to work.

Fonterra supply chain director Rob Howell said “for a number of months, Fonterra has been engaged in good faith negotiations with the union”.

“We have a fair and reasonable offer on the table of a minimum 10.5 per cent salary increase over three years plus more leave options and greater protections for our workers,” he said.

“Our production workers currently receive more than 30 per cent above the award base rate, and significantly higher when additional allowances are included.”

Saputo operations director Gerard Lourey said the processor remained “committed to continuing negotiations in good faith”.

“While Saputo acknowledges the right of our workers to take industrial action, we are extremely disappointed the unions and their members have chosen stoppage activities that will directly impact hard working dairy farmers in Victoria,” he said.

THURSDAY MORNING

Saputo’s Gippsland milk tanker drivers have returned to work, ending their 48-hour strike that began Tuesday at 3am.

Dairy Farmers Victoria president Mark Billing said some farmers had been forced to dump milk, but much of the impact had been offset by drivers and middle management from Western Victoria heading to Gippsland to help out.

Leongatha South dairy farmer Benjamin Vagg said the tanker did not pick up his milk in time last night, forcing him to dump about 4000 litres.

“A couple of farmers double dumped at Binginwarrie and near Yuroke and Toora,” Mr Vagg said.

He said the timing of the strike could not have been worse, given farmers were in the midst of peak spring production.

Transport Workers Union state secretary Mike McNess said the strike action ceased at 3am today, with drivers due to meet Saputo representatives for discussion tomorrow morning.

Mr McNess has previously stated the dispute was over reasonable hours of work and job security, given Saputo’s recent plant closures and announcements of further plant axings.

Meanwhile 1400 United Workers Union dairy factory workers continue to strike at Saputo, Lactalis, Fonterra and Peters plants, which may soon be unable to store more milk, raising the prospect of processors having to dump on site.

The union is calling for a 15 per cent pay rise over three years, with specific demands of Saputo to confirm the future of its operations in Australia.

UWU national secretary Tim Kennedy said both factory workers and farmers had been underpaid by Saputo, Fonterra and other processors for years.

“Workers who put up with wage increases as low as 2.5 per cent a year during the pandemic are saying they deserve a cost-of-living wage increase,” Mr Kennedy said.

“These workers are fighting for safe, secure jobs in regional communities, where almost every dollar they earn goes back into those communities.

“Given the historic nature of the strike across the state consumers can expect a big impact on supply chains and their favourite products.”

Fresh milk is the first product to be hit by this week’s strikes. Picture: NCA NewsWire

National Party federal leader David Littleproud said the strike would likely lead to price increases in the coming weeks.

“I’m all for workers getting fair pay, but the increase in what they’re asking for has to be reasonable,” Mr Littleproud told Sky News.

“And unfortunately, what we’re seeing now is a lot more industrial disputes since this government has come to power.

“And what we’ve also got to understand is that dairy is a perishable good. And this will have serious impact, if the unions continue to want to go down this path of action without understanding that this could actually put up prices significantly.”