Nestle locks out workers

July 18, 2001
Issue 

BY MELANIE SJOBERG

Have you wondered why the supermarket shelves are looking a little thin in the yoghurt section lately?

Food multinational Nestle, which supplies the bulk of yoghurt products to supermarkets, locked 100 workers out of its Echuca factory on June 22. The factory produces all Nestle yoghurt sold in Australia — worth $85 million a year.

The lock-out occurred as part of a dispute over a new enterprise agreement. Management want to include seven-day rosters in the agreement — working on three 12-hour shifts, followed by four days off, then four 12-hour shifts followed by three days off.

Workers are concerned that these shifts will cause significant disruption to their personal lives and their health.

Nestle is refusing to back down. Corporate services general manager Peter Kelly explained, "We want greater flexibility in the factory so we can make more yoghurt... this is necessary to break even."

Kelly has told the media that the dispute has cost Nestle a "significant amount of money". Nestle profits were up more than 22% for the last financial year — hitting $6.7 billion.

Australian Manufacturing Workers Union members have set up a peaceful picket outside the factory. They resumed discussion with management on July 10.

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