Dairy processor Saputo was hit by simultaneous industrial action by processing workers and transport drivers on Tuesday and Wednesday this week.
Industrial action hits dairy processors
Fonterra expects it can continue to supply products despite industrial action this week. Photo by Geoff Adams

Dairy processor Saputo was hit by simultaneous industrial action by processing workers and transport drivers on Tuesday and Wednesday this week.

The Transport Workers Union took protected action against Saputo on Tuesday, while a processing union launched strike action against Saputo, Fonterra, Peters and Lactalis on Wednesday.

The 1400 workers walked off the job for better pay and conditions.

The United Workers Union says the companies have refused to offer fair wages and improved working conditions for their Victorian workers amid rising living costs.

“Workers don’t make this decision lightly,” national secretary Tim Kennedy said.

“They’re not even asking for a wage increase that matches inflation, just five per cent or so that gets them a little closer to being able to keep up with skyrocketing costs.”

Meanwhile the Transport Workers Union members employed by Saputo are striking in Gippsland and introducing some work bans in north-eastern Victoria, affecting the Cobram factory.

Dairy Farmers Victoria has expressed concern at the ramifications of the impending strike in the dairy supply chain.

The new representative body said the ramifications of a strike go far wider than the parties involve.

Dairy Farmers Victoria said industrial action can hurt the farmers, consumers and possibly the environment.

Fonterra director Rob Howell said the company had a “fair and reasonable offer” on the table for workers, with a minimum 10.5 per cent salary increase over three years and more leave options.

Fonterra would ensure there were minimal disruptions from the industrial action, he said.

“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,” Mr Howell said.

Saputo was committed to resolving outstanding items with union representatives “amicably and swiftly”, operations director Gerard Lourey said.

Lactalis said its priority was working with farmers, who were at the peak of the spring milk season.

A Peters spokesman said the company was surprised by the “unnecessary union-led blanket action” and negotiations have continued in good faith.

“Peters offers the best employment conditions in the ice-cream industry, paying its factory workers 70 to 80 per cent above award,” the spokesman said.

The TWU said the occurrence of industrial action by two separate unions in the same week was coincidental.

VFF president Emma Germano said they hoped the industrial action is settled as soon as possible, but the VFF needed to have a wider conversation into the future of about pivotal supply chains.

“It’s a balancing act, with farmers, processors, workers and the consumer all competing for a fair price that allows for a sustainable and viable dairy industry,” Ms Germano said.

“Broadly speaking, we need to talk about how standover tactics have a different impact on fresh produce. The issue is more acute because the loss and spoilage has much wider economic and environmental outcomes.”

Canterbury milk processor Synlait says some farmer suppliers have been inquiring about the process to remove their cessation notices, handed in earlier this year.

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