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Simplot to keep food processing in Australia after wages deal

​The Australian operations of food processor Simplot has been saved by a “compromise” in wage negotiations, says the company.

As reported by Food Magazine and others yesterday, a six per cent pay rise over three years for workers was agreed on by the AMWU and Simplot.

According to the company, it had been considering moving processing to New Zealand, as Heinz and McCain have done in recent years.

Workers at Tasmanian sites at Devenport and Ulverstone agreed to the deal, which was reached after a year of negotiations between the union and Simplot.

“Compromise was required from both the company and the employees,” Simplot managing director Terry O’Brien told The Australian Financial Review.

“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 while continuing to protect the jobs and above-award wages of our employees.”

Workers will see a 2.5 per cent pay rise in the first year, 1.5 in the second, and two per cent in following years. Inflation is currently 2.3 per cent. The AMWU was originally seeking a 15 per cent pay rise over the years.

According to O’Brien, the agreement, as well as long-term contracts with the two major supermarket chains and the drop in the Australian dollar, had helped the company keep its Australian factories operating.

Simplot operates plants at Ulverstone and Devenport (Tasmania), Rchuca and Pakenham (Victoria), and Bathurst and Kelso (NSW). Its brands include John West, Chiko and Birds Eye.

Image: Sally Bryan/ABC Rural

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