More than 100 Fonterra workers in Melbourne strike for better pay and conditions, highlighting labor disputes in the wake of a major acquisition.
Dairy Worker Strike A Global Giant vs. Its Employees
Dairy workers on strike at the Fonterra site in Bayswater. Picture: Supplied

Over 100 Fonterra workers in Melbourne strike for better pay, conditions, and job security after a major acquisition.

More than 100 dairy workers at a Fonterra Oceania plant in Melbourne are on strike, demanding improved pay and conditions. The industrial action, which includes two-day-a-week strikes and public rallies, comes after six months of stalled negotiations between the United Workers Union and the company’s head office. This dispute follows the recent acquisition of the Australian company by Lactalis, a French-based global giant, and highlights the challenges faced by workers in the wake of large-scale agribusiness buyouts.

According to Neil Smith, the United Workers Union’s national dairy co-ordinator, the employees are pushing for a four-year enterprise agreement, a higher redundancy payout, and safety improvements. These demands include a new allowance for heavy lifting and a chemical allowance, reflecting the physically demanding nature of dairy work. Smith emphasized that the workers who built the company deserve a fair deal that provides them with financial security and job certainty, especially given their years of dedication.

A striking employee, Kathy Faulker, expressed the frustration felt by her colleagues, calling the negotiations a “one-sided tug of war.” She noted that what the workers are asking for is less than what Fonterra employees at other sites are paid. The strikes are an effort to look out for both long-term employees and newer staff, as they fight for a secure financial future for their families and for the stability of the local dairy industry.

Dairy Worker Strike A Global Giant vs. Its Employees1
Workers have vowed to continue to strike until their demands are met. Picture: Supplied

In response, Fonterra Oceania supply chain and operations director Rob Howell stated that the company is “disappointed” with the stalled negotiations. He claimed that the company has been offering a fair deal since March 2025, which includes a 10% pay rise over three years (less than the workers’ requested 5% over four years), as well as better allowances and leave options. Howell also expressed disappointment that the union seems to prefer industrial action over reaching an agreement.

The strikes are planned to continue, with workers vowing to take full-day action if the negotiations remain at a standstill. This ongoing conflict between a major global dairy company and its workers underscores the labor relations challenges that can arise during corporate mergers and acquisitions. It also highlights the critical role of unions in advocating for the rights of employees and pushing for better conditions in a globalized industry.

Source: Herald Sun, “Dozens of Fonterra workers strike at Bayswater dairy plant over pay deal

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