Aussies brace for chicken shortages as poultry workers demand fair pay
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You may need to stock up on groceries soon because poultry supplies at some of Australia's leading supermarkets and fast-food chains could face disruptions.
Over a thousand employees at Inghams—the country's largest poultry producer—demand a 6 per cent annual pay increase over the next three years. This translates to an extra $1.50 per hour per worker.
Inghams offers a range of products, such as fresh and frozen chicken and turkey products. They are a supplier to prominent Australian grocery stores like Woolworths and Coles, as well as popular fast-food chains such as McDonald's, KFC, and Subway.
The workers are planning a 24-hour strike on Friday to push for this wage hike. Should the action proceed, it could lead to supply shortages for supermarkets and fast-food chains, potentially affecting customers.
The United Workers Union (UWU) has warned that unless Inghams, the poultry company, agrees to a fair deal, workers are ready to take further industrial action.
UWU National Secretary Tim Kennedy explained, '(If the action keeps going), most definitely, it will have a big impact on supplies. Even the stoppages over Friday are going to have an impact on supplies. That's a fact.'
He emphasised that the ongoing industrial action would disrupt Ingham's operations and have a ripple effect on the entire supply chain, including farmers, due to the just-in-time industrial process.
In simpler terms, if an agreement isn't reached soon, there will be a major impact on the availability of chicken products.
The UWU claimed that Inghams could easily provide its employees with the demanded annual pay raise because the company had recorded significant profits.
According to The Australian, Inghams' financial report for the fiscal year 2023 showed a 12.2 per cent increase in revenue, reaching $3.04 billion. Their net profit also surged by 72 per cent to $60.4 million.
In a statement made to a different news outlet, the UWU accused Inghams of intimidating workers. They claimed the company distributed 'propaganda' to mislead workers regarding their legally protected rights and warned of a lockout if employees participated in the strike.
Mr Kennedy emphasised that if the company truly wanted to show its commitment to valuing its workers, who currently earn $25 per hour, it should allocate some of its substantial profits to provide a more liveable wage.
'Instead of dipping into their deep pockets, Inghams' managers have opted for obfuscation and intimidation,' said Mr Kennedy.
'It's really quite atrocious behaviour when you consider that these are the very workers who have contributed to their huge profits by showing up every day, during pandemics, in the middle of the night, on public holidays, doing a less-than-glamorous job to make sure that Australians have protein on their plates.'
In response to the union's proposal of a 6 per cent annual pay raise for the next three years, Inghams has put forward a different offer for its South Australian and Western Australian employees.
Inghams has suggested an annual increase of 3.9 per cent for South Australian workers in the first year, followed by 3.5 per cent in the second and third years. Meanwhile, Western Australian employees have been offered increases of 3.85 per cent, 3.45 per cent, and 3.5 per cent over the same three-year period.
The union is also advocating for casual employees to have the opportunity to convert to permanent positions after six months, a proposal that Inghams has rejected.
Currently, Inghams has not issued an official statement on the matter.
As we await the results of the strike, it's crucial to stay prepared. Hopefully, this won't lead to increased costs for us customers. We strongly advise you to monitor local supermarkets and any fluctuations in the prices of poultry products.
Members, we'd love to hear your thoughts on this matter. Please share your opinions in the comments below!
Over a thousand employees at Inghams—the country's largest poultry producer—demand a 6 per cent annual pay increase over the next three years. This translates to an extra $1.50 per hour per worker.
Inghams offers a range of products, such as fresh and frozen chicken and turkey products. They are a supplier to prominent Australian grocery stores like Woolworths and Coles, as well as popular fast-food chains such as McDonald's, KFC, and Subway.
The workers are planning a 24-hour strike on Friday to push for this wage hike. Should the action proceed, it could lead to supply shortages for supermarkets and fast-food chains, potentially affecting customers.
The United Workers Union (UWU) has warned that unless Inghams, the poultry company, agrees to a fair deal, workers are ready to take further industrial action.
UWU National Secretary Tim Kennedy explained, '(If the action keeps going), most definitely, it will have a big impact on supplies. Even the stoppages over Friday are going to have an impact on supplies. That's a fact.'
He emphasised that the ongoing industrial action would disrupt Ingham's operations and have a ripple effect on the entire supply chain, including farmers, due to the just-in-time industrial process.
In simpler terms, if an agreement isn't reached soon, there will be a major impact on the availability of chicken products.
The UWU claimed that Inghams could easily provide its employees with the demanded annual pay raise because the company had recorded significant profits.
According to The Australian, Inghams' financial report for the fiscal year 2023 showed a 12.2 per cent increase in revenue, reaching $3.04 billion. Their net profit also surged by 72 per cent to $60.4 million.
In a statement made to a different news outlet, the UWU accused Inghams of intimidating workers. They claimed the company distributed 'propaganda' to mislead workers regarding their legally protected rights and warned of a lockout if employees participated in the strike.
Mr Kennedy emphasised that if the company truly wanted to show its commitment to valuing its workers, who currently earn $25 per hour, it should allocate some of its substantial profits to provide a more liveable wage.
'Instead of dipping into their deep pockets, Inghams' managers have opted for obfuscation and intimidation,' said Mr Kennedy.
'It's really quite atrocious behaviour when you consider that these are the very workers who have contributed to their huge profits by showing up every day, during pandemics, in the middle of the night, on public holidays, doing a less-than-glamorous job to make sure that Australians have protein on their plates.'
In response to the union's proposal of a 6 per cent annual pay raise for the next three years, Inghams has put forward a different offer for its South Australian and Western Australian employees.
Inghams has suggested an annual increase of 3.9 per cent for South Australian workers in the first year, followed by 3.5 per cent in the second and third years. Meanwhile, Western Australian employees have been offered increases of 3.85 per cent, 3.45 per cent, and 3.5 per cent over the same three-year period.
The union is also advocating for casual employees to have the opportunity to convert to permanent positions after six months, a proposal that Inghams has rejected.
Currently, Inghams has not issued an official statement on the matter.
Key Takeaways
- Workers at Australia's largest poultry producer, Inghams, are preparing to strike in pursuit of an 18 per cent pay rise over three years.
- The United Workers Union warns that the strike could lead to a significant chicken shortage, affecting suppliers like Woolworths, Coles, ALDI, KFC, McDonald's and Subway.
- The Union claimed Inghams could afford the pay rise as it had recently experienced substantial profits, reporting a revenue increase of 12.2 per cent and a net profit rise of 72 per cent.
- Inghams has reportedly responded to the union's offer with less than 4 per cent annual increases for the South Australian and Western Australian workers and rejected the union's claim for casuals to convert to permanent employment after six months.
As we await the results of the strike, it's crucial to stay prepared. Hopefully, this won't lead to increased costs for us customers. We strongly advise you to monitor local supermarkets and any fluctuations in the prices of poultry products.
Members, we'd love to hear your thoughts on this matter. Please share your opinions in the comments below!