One hundred and seventy AMWU members working for milk processor Murray Goulburn in Victoria have taken industrial action following a breakdown in negotiations over a new union collective agreement.

The maintenance workers who are employed across seven processing sites are unhappy with the wage offer.

AMWU organiser Damian King said that the offer was rejected by the members because it doesn’t keep up with the rate of inflation.

“Our members don’t want a drop in living standards, particularly when the company reported a profit of $100 million last year. Their offer is well below the Consumer Price Index.

“The CEO received a 14% rise in his salary. Why should workers’ living standards be cut, when the company is doing so well?”

The workers have implemented overtime and call-out bans at all seven factories for the next six months or until an agreement is reached.

Mr King said negotiations have been going all year since the expiry of the last union agreement in December last year.

“We had a ballot and workers voted to take industrial action. They’re pretty determined to get a good agreement.

“They’ve contributed to the profitability and success of the company so why shouldn’t they get a better deal that what the company’s offering.”

In a separate development, a classification review that was agreed to by Murray Goulburn will not be implemented after the results showed that sixty trades people would need re-classifying.

Mr King said that two assessors carried out the joint review and the company had made an explicit commitment to honour the outcome of the review.

“People want to be recognized for their skill and there was an agreement that it would happen and the company’s walked away from it. The workers are very disappointed.”