Australia: Union members celebrate big win at Fonterra

Union members at a Fonterra site in Australia have scored a big win with their first Collective Agreement. The 60 members unanimously voted for their first Collective Agreement in November.

Union members at a Fonterra site in Australia have scored a big win with their first Collective Agreement. The 60 members unanimously voted for their first Collective Agreement in November.

The Agreement was the final step in a process that was quite simple once the workers joined the union and supported each other.

It began when a representative from the IUF-affiliated National Union Workers (NUW) visited a union contact at the site. During the meeting, the Organiser showed the contact a copy of the International Union Rights Agreement Fonterra had committed to.

In 2002, the IUF (a global union body representing 12 million employees across 336 trade unions in 120 countries) and the New Zealand Dairy Workers Union (NZDWU) signed an International Union Rights Agreement with Fonterra.

The Agreement stated that Fonterra workers no matter where they worked were free to join unions, because the company was committed to respecting the rights of all its employees to collectively bargain. The Agreement committed Fonterra to respecting the principles of no less than nine International Labor Organisation Conventions, including Conventions protecting workers' right to organise and collectively bargain.

NUW State Secretary Derrick Belan said the IUF and the NZDWU played a major role in Australian workers being able to win a Collective Agreement at Fonterra's site in Wagga Wagga, a regional town several hours north of Melbourne.

"Thanks to the efforts of the IUF and our friends at the Dairy Workers' Union in New Zealand, the NUW has been able to improve the wages and conditions of Fonterra workers in Australia.

With an Agreement committing Fonterra to respecting the rights of its employees, the workers freely joined the union and put a list of claims to the company.

Shortly after this, four Delegates were elected by the workers, who took part in the negotiations with the company.

The negotiations were a huge success for the workers, with the company agreeing to a Collective Agreement that contained the majority of the workers' claims.

NUW Organiser Peter Hearne said the conditions the members had won as part of their first Agreement were remarkable.

"What the members have gained in their Agreement is a great outcome given it is the first deal of its kind at the site," he said.

The new Agreement will run for the next three years, and provides major improvements to both the wages and conditions of workers at the site.

In an incredible achievement, wages will increase by between 7.1 and 8.2 per cent in the first year of the Agreement alone, with further increases of six per cent a year for the final two years of the Agreement.

Meanwhile, allowances for afternoon and night shift workers will be 15 and 30 per cent respectively under the Agreement.

Casual workers have won greater permanency as a result of the Collective Agreement. Casual workers who have worked continuously for 12 months will now be offered permanent employment, and Fonterra has committed to creating as permanent a workforce as possible.

Employees working overtime will receive an extra break, and extra breaks will also be provided to workers employed in cool temperatures.

In a further win for working parents, employees will be entitled to six weeks maternity leave and two weeks paternity leave.

And in the event of redundancies at the site, Fonterra workers will now receive four weeks pay for every year of service (to be capped at 52 weeks).

NUW Organiser Garry Cripps said the Agreement was an excellent outcome for the Fonterra workers.

"This Agreement is a reflection of the decision Fonterra employees made to join the union and support each other to improve the lives of everybody on site.

"The workers can be very, very proud of their achievements," he said.

Report prepared by Sam Roberts, National Organiser, National Union of Workers (NUW).
Email: sroberts@nuw.org.au