There's been a breakthrough in the ongoing dispute at Fonterra Australia's Victorian milk processing factories.
Late yesterday, Fonterra announced an "in-principle agreement" had been reached with the United Workers' Union.
Fonterra workers at the Darnum, Stanhope and Cobden, Victoria plants were threatening to take further industrial action, from tomorrow.
Along with workers at Saputo Dairy Australia, Lactalis and Peters Ice Cream factories, 300 Fonterra employees took part in a 48-hour stoppage, last week.
Earlier this week, the Canadian-based company Saputo agreed to "significant improvements in both pay and conditions", averting further industrial action at its factories.
"Fonterra Australia is pleased that an in-principle agreement has been reached and an offer will be presented to our production workers for their decision," Supply Chain and Operations director Rob Howell said.
"This offer is largely in line with what was previously on the table, following months of negotiations with the union," Mr Howell said.
"We reiterate that an agreement could have been reached without the union taking industrial action, which unfortunately reduced the pay packets of striking union members."
The revised offer will now be taken to Fonterra Australia's production workers for their feedback.
The offer includes:
Better pay: an increase of 12 per cent over three years (5pc in year one, 4pc in year two and 3pc in year three), plus a $500 sign on bonus
More leave options: increase in sick leave entitlements, up to five days paid emergency services leave, up to 10 days domestic violence leave and additional stored days off.
Improved protections for workers and recognition of return-to-work union delegates to support members if they are injured at work.
"Throughout these negotiations, we have been focused on reaching an agreement that was fair for our people, our farmers, our customers and the regional communities in which we operate," Mr Howell said.
"We all benefit when we are able to run a healthy business, which is the best way to protect jobs in regional communities.
"We look forward to discussing this in-principle agreement with our people."
A spokesman for Lactalis said the company was still "negotiating in good faith" with workers at its Longwarry factory.
The company was optimistic it would secure an agreement soon.
"We have not received notification of any additional industrial action at this stage," the spokesman said.
