Fonterra, Saputo workers join with union for better pay, conditions

"Apart from Fonterra workers, the vast majority of dairy workers who took action last week now have a pay offer of 5 per cent in front of them for year one," UWU national secretary Tim Kennedy said.

"That gets them closer to the current inflation rate and is double the pay rise of 2.5pc dairy workers agreed to to help their companies out during the pandemic."

However, the looming threat of further industrial action has not eased for processor Fonterra, with about 300 workers across three Victorian sites threatening to take a six-day strike from Saturday.

Discussions with the union and Fonterra are set to take place on Thursday, but at the time of publication, the industrial action would affect the company's sites at Darnum, Stanhope and Cobden.

"We want Fonterra to read the room and understand dairy workers are serious about winning a cost-of-living pay increase," Mr Kennedy 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."

Dairy Farmers of Victoria president Mark Billing said he was "happy" with the Saputo resolution, but was concerned about the potential ramifications the proposed strike action at Fonterra could have for farmers.

"It would have a significant impact on Fonterra sites," he said.

"Our concern is what impact that would have on milk collection if there was a six-day strike.

"For Fonterra sites, the lack of storage space in the peak of the season would make it difficult, however, I know that processors are working together to make sure that milk is processed."

Mr Billing said he was hopeful the discussions would continue in "good faith" and that the effects of industrial action would be minimal on the supply chain.

Fonterra Cobden worker Robert Lovell said Fonterra staff had shown unity throughout the process.

"We've put in notice of a six-day strike to show Fonterra we're serious and hopefully they can come to our meeting with a reasonable offer," he said.

"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."

Meanwhile, a planned strike at Saputo's Allansford site on Wednesday was cancelled as dairy workers considered the most-recent proposal.

The UWU reported 560 Saputo workers across sites at Cobram, Leongatha, Kiewa and Laverton said the company offered a pay offer of 5pc, 4pc and 3pc over three years, and five days of paid emergency service leave to allow volunteers to combat natural disasters.

The company also offered recognition of 12-hour shift workers when calculating their personal leave entitlements, effectively lifting their personal leave entitlements to 120 hours.

"In the case of Saputo, the current three-year offers in front of workers ranging between 11-12.5pc are way up on previous company offers as low as 8.25pc," Mr Kennedy said.

"It's fair to say this fresh approach has been welcomed by delegates.

"It will be the workers at the sites under those agreements that will make the final call as to whether the new offer is voted up."

For dairy farmers like Benjamin Vagg, Leongatha South, the news was welcome relief after he was informed last Wednesday his milk would not be picked up because of the Saputo strike.

He supplies a third company, but relies on the company to transport his product.

He said he fed calves with some of the milk from his 492-head Jersey herd.

"I had to reallocate roughly 3000 litres," he said.

"I only have a 7000L vat, it's not usually an issue.

"That played into it, there were some people who were only tipping out 500L."

A Saputo spokesperson said the company was "pleased to have reached an in-principle agreement with the UWU for its valued workers across our Allansford, Cobram, Kiewa, Leongatha sites and the Laverton Integrated Logistics Centre".