United Workers Union vote for strike at Fonterra, Saputo, Peters

Two strikes — one at the factory, the other at the farmgate — could see farmers dumping milk by mid-week.

Double-pronged industrial action in the dairy sector is set to force farmers to dump milk, after Saputo’s tanker drivers launched a 48-hour strike from 3am Tuesday.

Transport Workers Union state secretary Mike McNess said negotiations with Saputo had broken down over tanker drivers’ demands for reasonable hours of work.

Mr McNess said job security was also a factor, given Saputo’s recent plant closures and announcements of further factory axings.

The strikes’ impacts are also being felt by other companies, reliant on Saputo tankers to pick up their milk in Gippsland, such as ACM.

Leongatha South farmer Callum Moscript, who supplies Saputo, said he and other suppliers had been left in limbo during their peak production period.

“It’s difficult and frustrating not knowing if our product will be picked up or will we have to dump the milk,” Mr Moscript said.

Mr McNess said the tanker drivers’ industrial action was unrelated to dairy factory workers’ strikes at Saputo, Fonterra, Peters Ice Cream and Lactalis plants, which was due to start at 6am Wednesday.

More than 1000 dairy factory workers were due to launch strike action at 13 sites, over demands for a 15 per cent pay rise over three years.

Farmers may be forced to dump milk after Saputo’s tanker drivers launched a 48-hour strike from 3am Tuesday. Picture: Toby Zerna

Dairy Farmers Victoria president Mark Billing warned the tanker strike could lead to milk being dumped on farm, which created all sorts of headaches for farmers.

“Putting that much milk into (effluent) settling ponds disrupts them,” Mr Billing said.

Agriculture Victoria guidelines state dumping milk into effluent ponds “will produce odour, and the milk will reduce the ability of the pond to treat effluent”.

“This is because milk has a high biological oxygen demand and organic loading. Ponds that have had large amounts of milk added will take many months to recover and severe odour problems may occur for many months to follow.”

Last week, negotiations between the UWU and management at Saputo, Fonterra and Peters Ice Cream broke down, triggering the scheduled strike action on Wednesday and Thursday.

UWU national secretary Tim Kennedy said union members voted overwhelmingly in favour of the action in regional meetings over the past fortnight.

“Dairy workers have been dedicated, especially during the pandemic, with some even agreeing to wage offers as low as 1.5 per cent to support their companies,” he said.

“But with the soaring cost-of-living, they believe it’s time for change.”

Three sites at Saputo’s Allansford plant, two sites at its Cobram factory, Leongatha, Kiewa and the Integrated Logistics Centre at Laverton are the Saputo factories affected by the strike action.

Workers at Fonterra’s Cobden, Darnum and Stanhope sites will also strike, as will workers at Peters Mulgrave and Lactalis Longwarry.

Fonterra supply chain director Rob Howell said the processor had “mobilised a cross-company team to ensure that there are minimal disruptions as a result of this industrial action”.

“Our farmers will continue milking, and we will be doing everything we can to ensure that their precious, perishable milk can be collected and not wasted,” he said.

Saputo operations director Gerard Lourey said the processor would keep in contact with its suppliers to update them on potential strike impacts.

“We are actioning contingency measures to minimise business disruptions and keeping our customers, business partners and farmer suppliers updated on any temporary impacts they may experience,” he said.

A Lactalis spokesman said: “Our focus and priority is to work closely with our farmers to minimise the impact on them as a by-product of this coordinated strike action during the peak of the spring milk season.

“While we expect there to be some disruption and possible milk collection delays, through careful coordination with our carriers, we will do everything within our power to ensure action by the UWU does not result in farmers having to dump milk.”

Peters Ice Cream was contacted for comment.