Saputo Faces Labor Dispute Over Wage Disparities at Tasmania Dairy Plant
Source: The DairyNews
Saputo, the Canadian dairy giant, is currently engaged in ongoing labor negotiations to resolve a wage dispute at its Burnie facility in Tasmania, Australia. Maintenance workers at the site have been striking since last August, protesting that their pay is 21% lower than their counterparts in Victoria, on the Australian mainland.
The Australian Manufacturers Workers’ Union (AMWU) has criticized Saputo for allegedly employing overseas workers to mitigate the impact of the strike. According to AMWU organizer Michael Wickham, the company's latest wage increase offer of 9.5% falls short of expectations. Wickham accuses Saputo of using "scab labour" and employing "gutter tactics," including flying in workers from Germany and offering financial incentives to local companies to provide temporary labor during the strike.
Gerard Lourey, Operations and Supply Chain Director at Saputo Dairy Australia, stated that the company has repeatedly reached out to the union since mid-May to organize a bargaining meeting. "Saputo Dairy Australia is continuing to engage with our valued maintenance workers at Burnie and we remain committed to progressing negotiations in good faith," Lourey said, expressing the company's intention to resolve the matter amicably and fairly.
The union also claims there is a mismatch between the skills of the workers and their compensation. A recent review suggested that the majority of the maintenance team should be classified at a higher skill level, a recommendation that has not been adopted by local management. Adopting these recommendations would mean a wage adjustment that aligns with the workers' skills, which the union argues Saputo is currently benefiting from without proper compensation.
This labor dispute comes at a time when Saputo is restructuring its operations globally, having reduced its number of facilities in Australia from 11 to six, alongside closing six factories in the U.S. Despite these challenges, Saputo returned to profit in the final quarter of fiscal 2024 after a third-quarter loss linked to an impairment charge. The ongoing wage dispute underscores broader issues of wage parity and labor relations within the multinational corporation.
Gerard Lourey, Operations and Supply Chain Director at Saputo Dairy Australia, stated that the company has repeatedly reached out to the union since mid-May to organize a bargaining meeting. "Saputo Dairy Australia is continuing to engage with our valued maintenance workers at Burnie and we remain committed to progressing negotiations in good faith," Lourey said, expressing the company's intention to resolve the matter amicably and fairly.
The union also claims there is a mismatch between the skills of the workers and their compensation. A recent review suggested that the majority of the maintenance team should be classified at a higher skill level, a recommendation that has not been adopted by local management. Adopting these recommendations would mean a wage adjustment that aligns with the workers' skills, which the union argues Saputo is currently benefiting from without proper compensation.
This labor dispute comes at a time when Saputo is restructuring its operations globally, having reduced its number of facilities in Australia from 11 to six, alongside closing six factories in the U.S. Despite these challenges, Saputo returned to profit in the final quarter of fiscal 2024 after a third-quarter loss linked to an impairment charge. The ongoing wage dispute underscores broader issues of wage parity and labor relations within the multinational corporation.
