Truck drivers and factory workers plan strike action against the dairy industry

The lack of milk collection in Gippsland is part of wider strike action across Victoria, as dairy factory workers also refuse to work on Wednesday and Thursday this week.

Truck drivers are supporting the strike action with their own enterprise bargaining, but union representatives claim it is unrelated to the dairy factory workers' strike.

Transport Workers Union (TWU) Victorian and Tasmanian branch secretary, Mike McNess, said Saputo tanker drivers picking up milk in the Maffra and Leongatha region would stop work early on Tuesday morning, with some restriction of duties by truck drivers in Victoria's northern milk region.

The driver strike against Saputo is over a new enterprise bargaining agreement, with workers unhappy about proposed shifts change notifications, changes to the time drivers start work, and push for a higher pay offer.

The TWU action is part of their wider Safe Rates campaign to influence "wealthy retailers, manufacturers and oil companies to lift wages and improve conditions" for transport contractors and their workers.

"Wealthy clients at the top of supply chains are financially squeezing transport contracts. It means transport companies are forced to undercut each other to win work.

"For operators to survive, pay, conditions and safety are all cut, including truck maintenance and fatigue management. It results in transport workers being pressured to work harder, longer and faster to make ends meet.

"Along with the five per cent wage increase, workers want personal leave that accommodates their 12-hour shift pattern, and community service leave when they help in natural disasters."

A key consideration is transport operators commitment to continue working during the pandemic.

Mr McNess said the strike action by truck drivers was the only option available to union members.

But the truck drivers action is supposedly separate to the dairy factory workers strike, even though both affect one of Australia's largest milk processing companies, Saputo.

Workers from dairy milk processor companies Saputo, Fonterra, Peters and Lactalis will strike for 48 hours from tomorrow (Wednesday, October 18).

While some dairy processors have offered what they believe are "fair and reasonable" offers to their employees, an estimated 1400 workers from 12 processing sites will go on strike tomorrow.

Workers are asking for increased wages - of five per cent per year for three years - and improved working conditions, including job security.

Dairy farmers are justifiably concerned if their milk is not collected. Some dairy farms rely on daily collection, and some dairy farmers may have to dump their milk.

Spring time is peak production for the grass-based dairy system in Victoria.

Craig McRae, General Manager Milk Supply and Field Services for Saputo, contacted Gippsland suppliers to assure them the company wanted to continue "negotiating in good faith" with their workers.

He sought to reassure dairy farmers that Saputo Australia was seeking alternate arrangements for milk collection, on the back of the truck drivers expected strike action.

Dairy Farmers Victoria has expressed concern at the ramifications of the impending strikes on the dairy supply chain.

DFV President, Mark Billing, said while negotiating workplace conditions was normal practice, he was concerned about the wider impact of strike action along the supply chain.

"Dairy farmers respect the rights of the unions and processors to periodically review both pay and conditions," he said.

"Indeed, as dairy farmers we undertake similar processors in our workplaces on an annual basis.

"However, we have significant concerns regarding the proposed action.

"The ramifications of a strike go far wider than the parties involved. They hurt the farmers, they hurt the consumers and they hurt the environment.

"From a dairy farmer's point of view, it takes a lot of work to put milk in the vat, and it's very disappointing to see milk go down the drain.

"The truck drivers' action is obviously going to affect farmers in Gippsland more than others, because the drivers strike is more to do with the Gippsland area.

"For the rest of us, our milk may be collected, but with so many workers going on strike at the factories, and given that most farms are hitting peak production this month, there's already a fair bit of milk in the system.

"There's still some storage capacity at the factories, but it's limited.

"It would be different if we were at the lower end of the production season.

"On our dairy farm, our milk needs to be picked up once a day. Some farmers rely on pick up twice a day because of their storage capacity.

"If milk has to be dumped, there's the environmental issue of it going into the effluent pond."

Already this year, the Environment Protection Authority has fined a number of dairy farmers, mostly in Gippsland, for mismanagement of their effluent ponds. This included washdown and milk going into the pond and over-topping, impacting on creeks and rivers.

Mr Billing said he hoped the milk processing companies would compensate farmers who have to dump their milk.

"I hear the processors are trying to work out systems, and have committed to compensation. But we're still unsure what type of compensation will be offered.

"No doubt the unions have calculated the processors will feel the pressure from both directions - farmers and consumers - but farmers aren't going to engage in pressuring the processors."

Mr Billing asked for common sense to be applied, and to cease strike action.

"We implore all parties to return to the negotiating table.

"Our cows will continue to produce milk and our consumer family will continue to need milk and we will be ready to supply that milk.

"We respect the right to strike but I'm not holding my breath on a resolution this week. We certainly hope this strike action won't escalate beyond the two days.

"Very few processors are likely to dodge the impact of this strike action, but we're concerned about the storage capacity of the processors to hold onto two days of milk supply - it'll be a real challenge for the milk processors."

The United Workers Union national secretary, Tim Kennedy, said planned strike action was inevitable.

Mr Kennedy, representing dairy factory workers, said the protected action planned against Saputo, Lactalis Australia, Fonterra and Peters Icecream was the workers' last option after a long dispute over wages and conditions.

The strike would potentially impact mostly regional milk processing sites in Victoria.

"This is the biggest dairy action in living memory. It's never happened on this scale," Mr Kennedy said.

The withdrawal of collection services by truck drivers, in support of the dairy factory workers, will mostly impact Gippsland dairy farmers who supply processors outside of the region.

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 in a statement to Australian Associated Press (AAP).

"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.

The company is also putting contingency measures in place to minimise disruptions.

In a statement to AAP, Lactalis said its priority was working with farmers, who were at the peak of the spring milk season.

"We will do everything within our power to ensure action by the United Workers Union and the Australian Manufacturing Workers' Union does not result in farmers having to dump milk," a company statement to AAP read.

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 told AAP.

If milk processors struggle with storage coming out of the strike, they may need to reach out to other processors to skim their supply.

So far, no milk processor affected by the impending strike has reached out to processors unaffected by the strike action.

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