Fonterra Australia reaches agreement for production workers


Following several months of negotiations, Fonterra Australia is pleased to confirm that an in-principle agreement has been reached with the United Workers’ Union to support production workers at our Cobden, Stanhope and Darnum sites. 

“Fonterra Australia is pleased that an in-principle agreement has been reached and an offer will be presented to our production workers for their decision,” Rob Howell, Supply Chain and Operations Director, Fonterra Australia said.

“This offer is largely in line with what was previously on the table, following months of negotiations with the union. We reiterate that an agreement could have been reached without the union taking industrial action, which unfortunately reduced the pay packets of striking union members,” Mr Howell said.

The revised offer will now be taken to Fonterra Australia’s production workers for their feedback. The offer includes:

  1. Better Pay: an increase of 12% over three years (5% in year 1, 4% in year 2, 3% in year 3), plus a $500 sign on bonus
  2. More Leave Options: increase in Sick Leave entitlements, up to 5 days paid Emergency Services Leave, up to 10 days Domestic Violence Leave, additional Stored Days Off and 2 days mental health first aid training leave for union delegates
  3. Greater Protections: improved protections for workers and recognition of Return-to-Work union delegates to support members if injured at work.

“Throughout these negotiations, we have been focused on reaching an agreement that was fair for our people, our farmers, our customers and the regional communities in which we operate. We all benefit when we are able to run a healthy business, which is the best way to protect jobs in regional communities,” Mr Howell said.

“We look forward to discussing this in-principle agreement with our people,” he said.


For further information contact:

Elizabeth Bardwell

Fonterra Australia Communications

0400 051 635