In a significant development, employees of Australia’s largest poultry producer, Inghams (ING.AX), are set to embark on a 24-hour strike this Friday. The strike action comes after months of pay negotiations failed to yield an agreement, as confirmed by a statement from the United Workers Union on Wednesday.
In compliance with Australian labor laws, the union formally notified Inghams of their intention to strike, marking a crucial step before initiating industrial action. As of now, Inghams has not issued any additional comments, and discussions between the company and the union are ongoing.
According to a report in The Australian newspaper, over 1,000 workers are expected to participate in the strike, advocating for a 6% annual pay increase throughout the term of a new three-year agreement. Currently, Inghams employees receive approximately A$25 per hour, and their request for an additional A$1.50 per hour reflects their efforts to secure fair compensation.
Tim Kennedy, the National Secretary of the United Workers Union, highlighted the significance of the pay dispute, emphasizing the workers’ need for a reasonable wage increase.
The potential for prolonged industrial action within Inghams raises concerns about disruptions in the live supply chain and its subsequent impact on the company’s ability to meet its commitments to customers. Phillip Kimber, a retail analyst at E&P Capital, noted, “We expect some compromise to be reached,” underscoring the importance of finding common ground in this dispute.
Inghams is a major supplier of poultry products to prominent Australian supermarkets such as Woolworths (WOW.AX) and Coles (COL.AX), as well as fast-food chains including McDonald’s (MCD.N). The outcome of the strike and ongoing negotiations will be closely monitored, as it has the potential to affect the poultry supply chain and, by extension, the availability of products to consumers and fast-food outlets across the country.
