The AMWU fears the future Australian production of iconic ice cream products could be under threat as Streets cuts jobs from its West Sydney factory.

The Minto site producing the Streets ice cream range – like Magnums, Bubble O’Bills, Vienettas and Paddle Pops – is trying to cut 27 positions before June 30 and has foreshadowed cutting 50 to 70 more over the next 18 months.

The redundancy process and selection criteria are currently in dispute.
“They are effectively attempting to cut one-third of positions from that factory,” says NSW Food and Confectionary Division Secretary Bruce O’Keefe.
 
“They can’t explain how they are going to continue to produce ice cream.”
Streets, which is owned by multinational Unilever, has claimed the restructure is due to pressure from its Australian competitors, which include Nestle and Cadbury.

But research and analysis conducted by the AMWU indicates that the restructure is about cutting costs so the Minto site can compete with Streets’ Asian factories in China and Thailand. 

“Streets could not provide any evidence of disadvantage compared to its Australian competitors,” says Bruce.

“But under this restructure, the Supply Manager is no longer linked to the Minto factory and the manager can order from whichever factory he likes – meaning the Australian factory will be pressured to compete with the Asian sites.” 

Streets’ Chinese factory is currently limited to producing water ice products, due to the presence of foot and mouth disease in Chinese dairy products.
However, the AMWU is aware the company is investigating ways of manufacturing dairy ice cream products in China using Australian powdered milk.

“We are concerned about the current job losses but also about keeping these jobs in Australia for the future,” says Bruce.

The AMWU is concerned that the current redundancy process is not objective or voluntary and has formally put the matter into dispute, sending the matter to the Australian Industrial Relations Commission.

“Streets only recently finished the process of employing 30 new workers to operate new lines.

“We don't believe there are operational reasons for these jobs cuts, however, if they must cut the jobs, they should take volunteers where possible,” says Bruce.

The job losses will have a damaging impact on the local community at Minto, which is a low socio-economic area with few job opportunities.