United Workers Union gets Saputo deal, talks with Fonterra

Dairy factory workers are weighing up whether to accept proposed deals from three processors, while negotiations with Fonterra reached a crescendo this afternoon. See the latest.

High-level talks between Fonterra and the United Workers Union are taking place today, after a tentative deal was offered by Saputo.

A strike by UWU members at Fonterra, Saputo, Peters and Lactalis factories across Victoria was postponed on Wednesday after pay talks progressed with the four processors.

Saputo, Peters and Lactalis have all offered different pay deals that the UWU membership is currently considering.

Fonterra is in talks with UWU delegates, as of Thursday afternoon.

The crunch talks follow a 48-hour strike last week involving 1400 dairy workers across 13 factory sites statewide.

More than 300 workers at Fonterra factories were originally poised to strike from this weekend, prior to the management-union talks taking place.

Fonterra Cobden factory conveyor belt.

The Fonterra sites produce brands including Western Star Butter, Woolworths milk and Perfect Italiano cheeses.

United Workers Union national secretary Tim Kennedy said the ball was in Fonterra’s court.

“We want Fonterra to read the room and understand dairy workers are serious about winning a cost-of-living pay increase,” he said.

“A company that hasn’t listened to its workers for six months should go into the talks prepared to meet their expectations or face the consequences.”

Fonterra Cobden worker Robert Lovell said his colleagues put in notice of a six-day strike to show Fonterra they were serious.

“They talk up their profits, but when we ask for a share of that – Oh no, it can’t be done. The more money we get the more we spend in the local community,” he said.

Fonterra, Lactalis and Peters have all been contacted for comment.

Saputo workers are currently assessing several different deals offered by the Canadian processor.

A pay offer of 5 per cent, 4 per cent and 3 per cent over three years has been presented to 560 workers at Saputo sites at Cobram, Leongatha, Kiewa and Laverton.

A separate Saputo offer has been presented to the 320 workers at Saputo sites at Allansford —

4.25 per cent to 5 per cent in year 1, 3.75 per cent to 4 per cent in year 2, and 3 per cent to 3.5 per cent in year 3, depending on the agreement.

Saputo operations manager Gerard Lourey said the processors was “pleased to have reached an in-principle agreement with the United Workers Union for its valued workers across our Allansford, Cobram, Kiewa, Leongatha sites and the Laverton Integrated Logistics Centre”.

Mr Kennedy said apart from Fonterra workers, the majority of dairy workers who took industrial action last week now had a pay offer of 5 per cent in front of them for the first year of the bargaining agreement.

“That gets them closer to the current inflation rate and is double the pay rise of 2.5 per cent dairy workers agreed to help their companies out during the pandemic,” he said.