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National Union of Workers

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Arnotts, S.A. Dispute Settled

Monday May 27, 2002

NUW members at Arnotts Biscuits were shocked when, over the annual Christmas shutdown, Arnotts decided to reduce the pay of 7-day shift workers who took annual leave. The company also extended this reduction of pay to shift workers who took sick leave and bereavement leave. What particularly shocked the NUW workforce was that all of this was done during the life of a certified agreement and after the company had been paying people correctly for 8 months.

The NUW’s South Australian Branch immediately notified the company of a dispute. Several meetings were held with company representatives to negotiate a resolution. Unfortunately these efforts proved fruitless. After discussions with the NUW delegates, it was decided that the Union should run the dispute in the Industrial Relations Commission.

However, this process also proved to be frustrating due to delays in hearings and the reluctance of the Commission to rule on specifics of the certified agreement where each party had a different opinion of the intent of the clause.

The Union’s persistence eventually lead to an offer from the company to resolve the dispute. This offer was put to a vote of NUW members but was rejected. The members then decided to take industrial action in the form of stop work meetings to obtain a satisfactory agreement from the company. After the first shift stop work meeting, the company revised their offer and the dispute was settled.

Our members retained their 17.5% leave loading plus shift penalties when on annual leave and will be paid as if they are working when on sick or bereavement leave. Back pay was also paid.

There were several lessons learned during this dispute: the main one being that united action is a powerful force that speaks louder than words.


Last modified 2005-03-10 11:34 AM

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