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Arnott's workers strike over hourly pay rises worth less than a packet of biscuits

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • About 160 workers at Arnott's Marleston factory in Adelaide walked off the job for 24 hours.
  • The strike, the first in over three decades, protests hourly pay rises of less than $1, which workers say are insufficient to cover living costs.
  • Arnott's, owned by private equity firm KKR, offered a 9.5% wage increase over two years, but the majority of workers rejected it.

Arnott's workers in Adelaide, who produce iconic Australian snacks like Tim Tams and Iced VoVos, have staged their first strike in over 30 years. Approximately 160 day and night shift employees at the Marleston factory walked off the job for 24 hours on Tuesday.

What you'll find is these workers have to actually work overtime to make their pay packet stretch.

โ€” Adam AuldUnion spokesperson Adam Auld explained the financial struggles faced by workers due to insufficient pay rises.

The United Workers Union stated that previous pay rises amounted to less than $1 per hour, insufficient to keep pace with the cost of living. Union spokesperson Adam Auld highlighted that many workers struggle with mortgage and rent payments due to stagnant wages over the past four years. "Just think for the last four years they haven't been ahead of the cost of living, and right now, we're asking for Arnott's to come to the table with something that will get them ahead," Auld said.

Just think for the last four years they haven't been ahead of the cost of living, and right now, we're asking for Arnott's to come to the table with something that will get them ahead.

โ€” Adam AuldUnion spokesperson Adam Auld emphasized the need for a pay increase that allows workers to get ahead financially.

Arnott's, currently owned by private equity firm KKR, has offered a 9.5% wage increase spread over the next two years. However, this offer was rejected by 95% of the workforce in a recent vote. An Arnott's spokesperson expressed disappointment, stating the company respects employees' right to industrial action but remains committed to good-faith negotiations for a sustainable agreement.

While we respect our employees' right to take protected industrial action, we're disappointed given the constructive discussions that have taken place.

โ€” Arnott's spokespersonAn Arnott's spokesperson commented on the strike, acknowledging employees' rights while expressing disappointment.

The Marleston factory has a long history, with Arnott's originating in the mid-1800s. The company has undergone several ownership changes, including a period under Campbell Soup Company before its acquisition by KKR in 2019. In 2014, the factory saw about 120 jobs made redundant, with those positions moved to Sydney and Brisbane.

We remain committed to negotiating in good faith with the union and are focused on reaching an agreement that supports both our employees and the long-term sustainability of our operations in Adelaide.

โ€” Arnott's spokespersonThe Arnott's spokesperson stated the company's commitment to reaching a mutually beneficial agreement.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.