More than a hundred of employees at Treasury Wine Estates staged a protest to demand better pay in response to higher costs of living after the workers took a wage freeze during the pandemic.
According to a report by InDaily, about 125 workers at two TWE’s sites in South Australia’s Barossa Valley, home to the company’s flagship Penfolds, Wolf Blass and Grange Hermitage labels walked off on their job to demand salary raise over the next three years.
The workers, who had previously accepted a wage freeze during the pandemic, are now seeking a 7% pay increase in the first year, followed by 5% increases respectively in the second and third years. This demand contrasts with TWE’s proposal of 4.5%, 3%, and 3% increases over the same period.
The dispute highlights the tension between workers struggling with cost-of-living increases and a company poised for growth upon reopening of wine trade with China.
After two years of punitive tariffs, China is anticipated to lift the tariffs as early as next April. The resumption of trade with China offers a potential rebound for TWE particularly its flagship brand Penfolds, making the current wage negotiations even more pivotal as the company looks towards a period of projected growth.
“Treasury Wines executives might think nothing of sampling a $800 bottle of Grange but workers are in the grips of a cost-of-living crisis and finding it hard to put food on the table,” Tim Kennedy, the United Workers Union (UWU) national secretary.
“As Treasury Wines eyes profit growth, particularly with the potential reopening of trade with Chinese markets, it is crucial that these gains are equitably shared, starting with the workers who have supported the company through thick and thin,” says Kennedy.
The fact TWE’s CEO Tim Ford was awarded a AU$2.5 million bonus was also a “bitter pill” for workers to swallow after their wage freeze, according to Kennedy.
In addition to better pay, the workers are also taking a stand against what they deem “unfair labor practices” at TWE. This includes allegations from former labor-hire workers who took the company to the Human Rights Commission in April, accusing TWE of violating the Disability Discrimination Act by terminating their employment without notice.
However, TWE defended its payment structure for the workers, saying their pay were among some of the highest in the industry.
“This increase is ahead of the average annual wage growth and in line with forecasted CPI over the covered period. We will continue to negotiate with all bargaining representatives, including the proportion of our team at the Barossa winery and packaging facility that is represented by the United Workers’ Union to achieve an agreement,” said a TWE spokesperson.
The company maintained that the strike poses no impact on the production of any of the company’s brands, including Penfolds.
China was previously the most lucrative market for TWE, responsible for one third of group’s total profits before Beijing imposed up to 218% tariffs on Australian wine in 2021 over a series of disputes.
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