Thousands of dairy workers are preparing to strike. Will there be milk in the stores?

Victoria is facing milk shortages with unprecedented strike action planned by dairy workers.

Milk tanker drivers plan to stop work in eastern Victoria from 3am Tuesday, which could prevent milk pick-up from farmers who supply processor Saputo.

While 1,400 dairy factory workers who work at four main processors across regional and metropolitan Melbourne, plan 48 hours of industrial action from Wednesday.

United Workers Union (UWU) national secretary Tim Kennedy, who represents 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.

“This is the biggest dairy action in living memory, it’s never happened on this scale,” Mr Kennedy said.

The strike would mean “no processing” at 14 sites including at Leongatha, Longwarry and Darnum in eastern Victoria, Warrnambool in the south-west along with Kiewa, Cobden, Tangambalanga, Stanhope and Cobram in the north plus Mulgrave and Laverton in Melbourne.

The UWU factory workers are calling for wage increases of 5 per cent per year for three years.

But Mr Kennedy said they were also demanding job security and wanted the large “transnational” processors to recognise “the dairy industry here in Victoria is in crisis”.

“[We] need these corporations to invest and plan and to help rebuild the milk supply in Victoria to make certain that the regional communities are sustainable,” he said.

“These jobs used to be able to build a life [for workers] in these communities, now they’re under threat.”

Milk and cheese shortage possible

Shoppers could see milk and other dairy product shortages if both strikes drag on.

Mr Kennedy said the milk factories process a perishable product and there would be impacts on the supply chain.

“All the products are at risk, not just fresh milk — all cheeses, yoghurts, and ice cream,” he said.

The shortages could be compacted by the milk tankers strike — set to start in the early hours of Tuesday morning.

Transport Workers Union (TWU) branch secretary Mike McNess said Saputo tanker drivers picking up milk in the Maffra and Leongatha region would stop work early tomorrow morning, with some additional action in Victoria’s northern districts.

Tanker drivers under pressure 

The drivers’ strike against Saputo is over a new enterprise bargaining agreement, workers are unhappy about proposed shift change notifications, and changes to the time drivers start work, plus they want a higher pay offer.

Mr McNess the action would “have a flow-on effect” on farmers and consumers but drivers were being put under extreme pressure “from the top of the supply chain”.

“Unfortunately it’s almost unprecedented action but it’s the only option that’s available to [union members] at the moment,” he said.

“These tanker drivers worked throughout the pandemic.

“They took a very small pay rise throughout the life of their last agreement, and they’re looking to get some recognition for the work they do.”

Farmers worried about dumping milk

Dairy Farmers of Victoria president Mark Billing said most farms could only store three days’ worth of milk if tankers stopped picking up their supply.

But in spring cows produce more milk, so farmers could be forced to dump milk on farm.

“The [strike] timing is not ideal being at peak of the season and most farms are relying on same day pick up,” Mr Billing said.

“The potential environmental impact could be quite high if milk is not picked up.”

Mr Billing said while farmers would still be paid, he was worried about the impact on consumers, and processors who have struggled with higher costs.

“The action [being] taken by the unions has a flow-on effect. It’s not just the dairy farmers, it’s farm workers, it’s communities, and our consumers,” he said.

In a response, Fonterra Australia supply chain and operations director Rob Howell said the company had engaged in good faith negotiations with the union for months.

“We have a fair and reasonable offer on the table of a minimum 10.5 per cent salary increase over three years plus more leave options and greater protections for our workers,” Mr Howell said.

“Our people covered by this agreement are paid significantly higher than the award, and we were committed to our people during COVID-19 when we provided them with pay increases of 2.5 per cent, 2.5 per cent and 2.75 per cent in 2020, 2021 and 2022 respectively.

“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.”

Lactalis Australia said it was working closely with farmers to minimise the impact on them as a by-product of this coordinated strike action during the peak of the spring milk season.

The company said it would continue to negotiate in good faith with the unions to achieve a fair and equitable outcome, and it believed the four-year deal it has tabled at Longwarry is fair given the current industry pressures, providing certainty and security for employees.

Saputo and Peters Icecream have also been contacted for comment.