Australia’s GrainCorp fails to strike wage deal with union; industrial action likely

GrainCorp, one of Australia’s top agribusiness and processing companies, has failed to reach an agreement with the country's labor union on wage hikes for workers at its New South Wales grain delivery sites, which may result in a protected industrial action beginning as early as Oct. 29, it said in a statement Oct. 25.

Some 200 employees across New South Wales could go on strike beginning Oct. 29 for an entire month, which would see hours-long stoppages at a time just as the winter crop harvest in New South Wales ramps up.

GrainCorp tried to reach a deal with the Australian Workers Union (AWU) and delegates at the Fair Work Commission on Oct. 25.

"We put forward an offer of 14% over three years, an increase in the sign-on bonus to $1,000 and back pay to 1 July 2024, however this offer was not accepted," said GrainCorp's Head of Corporate Affairs Jess Simons, in a statement.

While expressing disappointment over the outcome, Simons added that "... the AWU has decided to escalate the process towards protected industrial action at the most important time of year for NSW [New South Wales] growers and their businesses" in the statement.

She said the company will monitor the impact that the industrial action could have on harvest activity at the affected NSW delivery sites and keep growers informed of the situation as it develops.

Simons added that the company is committed to returning to the negotiating table with AWU and its workers, though a date has not yet been decided.

Tony Callinan, AWU's branch secretary for the NSW region, told S&P Global Commodity Insights that he had reached out to senior GrainCorp management with the hopes of fresh negotiations.

“The employees want an extra 1% wage increase in the third year. GrainCorp has offered 6%, 5% and 3%, the employees want 6%, 5% and 4%. Considering GrainCorp has made over $530 million profit in the last three years, the employees believe they can afford it,” said Callinan.

He did not comment on the possibility of workers proceeding with work stoppages regardless of the new negotiation date.

The industrial action coincides with a potentially bigger wheat harvest in New South Wales for the 2024-25 marketing year (October to September), with market expectations ranging 11 million-13 million mt. The state's wheat harvest in the prior season was at 7.09 million mt, according to the Australian Bureau of Agricultural and Resource Economics and Sciences.