Employees at Simplot’s Tasmanian and regional NSW manufacturing plants have voted in favour of a new union agreement, which will see workers receive a six per cent pay increase over the next three years.
The move comes after more than a year of negotiations to replace the current enterprise agreement for some 800 employees working across Simplot’s manufacturing sites at Bathurst and Kelso (NSW) and Devonport and Ulverstone in Tasmania.
Simplot employees covered by the new agreement will now receive a 2.5 per cent wage increase in year one, followed by increases of 1.5 and 2 per cent in years two and three of the agreement.
“This agreement was complex and difficult as it heralds the march back to global competitiveness for our major Australian operations,” said Terry O’Brien MD of Simplot said.
“We needed to achieve a balance of improved productivity, reduced labour cost escalation and at the same time reflect the reality of cost of living pressure on our employees. Clearly these aims are not necessarily aligned and so compromise was required from both the company and the employees.
“I believe we found a compromise which will help Simplot Australia maintain its hard earned market position and to restart desperately needed sales and margin growth whilst continuing to protect the jobs and above award wages of our employees,” O’Brien said.
Simplot’s brands include Edgell, Birds Eye, John West, Leggo’s, Lean Cuisine, Chiko, and Harvest.
