Bathurst Simplot workers plan 24-hour strike

The strike follows rolling work bans over the weekend and later this week at its Tasmanian operations in Devonport and Ulverstone.

But a spokesperson for the Australian Manufacturing Workers Union said discussions with Simplot management would continue in the meantime.

Simplot Australia managing director Terry O’Brien yesterday said strike action would only serve to delay the finalisation of replacement enterprise agreements and, in particular, harm the business, employees, regional communities and other parties, including growers, customers and local suppliers.

“It is now time for the employees of Simplot and their local communities to fully understand that labour costs are a major part of the problems we are facing,” he said.

“Over the last 18 months we have invested a great deal of time discussing the long-term viability of our plants, in particular Bathurst and Devonport, with everyone who has an interest in seeing them remain in Australia rather than follow every other frozen vegetable processor overseas.”

Simplot announced in October 2013 that its Bathurst plant would be scaled back to essentially a daytime running schedule and Devonport would be given a further three years to work the cost of manufacturing down to competitive levels.

Mr O’Brien said Simplot has since sought to urgently restructure these plants to secure their long-term financial viability and reduce their cost structures, while at the same time minimising the impact on employees.

He said state and local governments, customers, growers and other suppliers have all helped Simplot achieve cost reductions backed by a commitment from the company to invest $60 million on new technology equipment.

“Now that we have come to the time for the final stakeholders, our employees, to become involved, the union is refusing to back down on historical practices of demanding four per cent per annum wage increases,” Mr O’Brien said.

“This is substantially more than other wage outcomes being agreed elsewhere and is more than Simplot is capable of paying if we want a strong company which is able to replace ageing equipment, upgrade its facilities and create great new products to stay competitive in the long term.

“Simplot has proposed total increases of four per cent over three years at its Bathurst and Devonport plants and a total of six per cent over three years for the other sites.

“While our offer of two per cent per annum for employees at our Tasmanian and NSW sites is below the current inflation rate, it is also true that in recent years we have paid approximately a cumulative 15 per cent above inflation in wage claims. 

“It is one of the critical reasons we are in this predicament today.”

He said too often communities affected by companies’ decisions to downsize or close businesses are not aware of the potential for that to happen until it occurs.

“We have always made it abundantly clear that labour costs are a major part of the problem,” he said. 

Mr O’Brien said the company remains open to continuing discussions with the union.

He said the strike action will only delay finalising new agreements and result in employees losing pay.