About 80 per cent of Saputo tankers drivers go out for 48 hours from 3am Tuesday

The Victorian Farmers Federation has called for a quick resolution to industrial action at Saputo's Allansford milk processing site.

VFF president Emma Germano said she hoped the industrial action was settled as soon as possible.

"But, we need to have a wider conversation into the future of our pivotal supply chains," she said.

"It's a balancing act, with farmers, processors, workers and the consumer all competing for a fair price that allows for a sustainable and viable dairy industry.

"Broadly speaking, we need to talk about how standover tactics have a different impact of fresh produce.

"The issue is more acute because the loss and spoilage has much wider economic and environmental outcomes."

Late Tuesday the Transport Workers Union clarified that although Saputo milk tanker drivers across the state started a strike at 3am Tuesday, that did not include Allansford drivers.

He said Allansford drivers had a separate enterprise bargaining agreement.

"That was my misunderstanding on our part about Saputo Allansford which we are now seeking to clarify," he said.

On Wednesday, three separate divisions of union members at the Allansford plant will strike for 48 hours - Everyday Cheese, Sungold and bulk cheese.

Earlier: Most Saputo factory milk tanker drivers have gone on strike for 48 hours.

A Transport Workers Union spokesman said 80 per cent of the just over 150 drivers from Saputo's milk processing sites at Leongatha, Rochester, Kiewa, Cobram and Maffra voted to go on strike from 3am Tuesday, October 17, for 48 hours.

The industrial action did not include Allansford tanker drivers.

The TWU spokesman said enterprise bargaining agreement negotiations were into their eighth month and failed last-minute talks last Friday prompted the industrial action.

"In terms of what we are asking for, it's in line with CPI increases," he said.

"This is not a coordinated action with other planned action by Saputo and Fonterra workers on Wednesday. It's just happened to fall in line."

About 300 United Workers Union members at the Allansford site voted to strike on Wednesday, October 18, for 48 hours after failed EBA negotiations where workers want a 15 per cent pay rise over three years.

Among those striking is Dave Clements, a 40-year veteran at the plant.

"The workers at the Allansford site feel they are undervalued for the time and effort they put in during COVID-19 and the pay offer (10 per cent over three years) doesn't even come close to the cost of living at the moment," he said.

"We're strong supporters of the farmers and we only want the best for the dairy interest as a whole. This is not a selfish attitude by the dairy workers, we are just trying to protect our jobs and communities."

The TWU spokesman said there was a ballot after a submission for protected action in July.

"Our members were threatened, we held held off taking action and went back to the negotiation table a few months later," he said.

"Last week we again submitted to take protracted action, but sat down on Friday in good faith to talk again.

"The offer from Saputo was bad, insulting. It was a pretty terrible deal. We delayed action until those negotiations failed."

The spokesman said the strike in line with Sungold, Everyday Cheese and bulk cheese workers was not ideal as the TWU message was being lost among the other industrial action.

"It does add more pressure on the company but that was not by design," he said.

"Our messaging has been about wanting security for our workers. Here you have a multi-national company saying it will be shutting down factories.

"That's extremely concerning for our members and the farming communities our drivers service."

Saputo chair and chief executive officer Lino Saputo was last week reportedly asked by Federal agriculture minister Murray Watt to clarify the company's position in terms of closing factories.

The "right sizing" of the Australian operation would be completed by the beginning of next fiscal year (the end of March), Mr Saputo told the annual CIBC Eastern Institutional Investor Conference in Montréal, Québec, on Thursday, September 28.

Saputo announced the closure of its processing plant at Maffra, Victoria, in November last year, but tanker drivers still service that region.

It also announced it was streamlining activities at its plants in Leongatha in West Gippsland and Mil-Lel, near Mount Gambier, South Australia.

In April Saputo also announced plans to sell its Laverton, Victoria, and Erskine Park, NSW, sites to Coles.

That sale is being examined by the Australian Competition and Consumer Commission, which on September 14 announced it was delaying that decision to seek more information.

Last week Saputo Dairy Australia reiterated it would continue to negotiate with Allansford workers in the hope of avoiding strike action during current EBA negotiations.

"SDA remains committed to continuing negotiations in good faith to reach an agreement for our valued workers and our intent is to resolve outstanding items with union representatives amicably and swiftly," SDA director of operations Gerard Lourey said last Friday.

"We are also actioning contingency measures to minimise business disruptions and keeping our customers, business partners and farmer suppliers updated on any temporary impacts they may experience."

The company has been offered the opportunity to comment today.

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