Dairy factory workers demand mainland pay parity

Australian Manufacturing Workers Union (AMWU) Tasmania organiser Mick Wickham said it was embarrassing that Fonterra recorded a $1.5 million AUD profit during the last financial year but paid maintenance workers at its Wynyard and Spreyton almost a quarter less than their interstate counterparts.

Fonterra workers have been taking protected industrial action since the beginning of September, with Mr Wickham saying that Tasmania was “no longer the poorer cousin of the mainland” when it came to wage differences.

The AMWU said it had previously reached an “in-principle” agreement with the company where maintenance workers would receive an allowance during shutdown periods and better provisions were in place for shift workers on call.

Mr Wickham said Fonterra also agreed to let workers receive paid meal breaks during a shutdown.

“They took all three things off the table and offered a paltry 1.1 per cent pay rise in comparison.

“I just think it’s embarrassing that this company can make so much money off the back of workers and determine that they can’t pay a reasonable amount of money for that effort.

“We’ll continue this industrial action and ramp it up accordingly if we don’t get a result this week.”

During a shutdown, Fonterra maintenance workers at the Spreyton and Wynyard factories move from shift to day rates, which Mr Wickham said resulted in a significant wage drop.

“Everybody's budget is for what they earn every week, each year.

“So what we are saying is that there should be an allowance which will compensate, in some respect, the big drop in money during a shutdown once a year.”

Mr Wickham said that many of Fonterra’s Tasmanian maintenance workers, particularly at the Spreyton factory, were on call for 24 hours and could be called in three to four times a night if there were issues at the facility.

“We’re trying to restrict that eventuality because of fatigue and safety issues.

“There’s got to be some better provisions around how many times you’ll be called in before it becomes unsafe.

“Alternatively, they can employ a couple more maintenance workers so they can run a proper shift work arrangement.”

Fonterra Oceana operations and supply chain director Rob Howell said the company had been negotiating in good faith with the unions and was disappointed that the discussions had stalled.

"We have been offering a fair deal since July 2025, which includes better pay, increased personal leave entitlements, better terms on call-backs, and additional paid and in-lieu allowances," Mr Howell said.

"The offer is well above inflation rates, significantly above award rates, and acknowledges the work that our maintenance workers do at Wynyard and Spreyton.”

Mr Howell said pay rates for its Tasmanian factory maintenance workers were comparable to those of their mainland counterparts.

“There are some small differences based on role type, hours worked and local factors.

"Despite this, depending on the role, the difference is about five per cent.

"Customers and consumers haven't been impacted by this strike action and we continue to operate at full production levels.

"We will monitor our supply position and will keep our customers updated."

Fonterra agreed to sell its global businesses to French dairy giant Lactalis for $3.4 billion, which is expected to be finalised next year.