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News
Jacob’s Creek workers strike over concern for jobs
More than 120 workers at a Pernod Ricard production facility in the Barossa Valley went on strike last week over the potential sale of the company.
The workers stopped for four hours at the Rowland Flay winery in South Australia, which produces Jacob’s Creek and St Hugo wines, with more strikes expected today (30 July).
It follows the news that Pernod looks set to sell-off its wine brands to Australian Wine Holdco Limited (AWL), which is a consortium of investors that owns Accolade Wines.
Deal
The transaction includes the sale of its portfolio of international wine brands owned and produced by Pernod Ricard Winemakers, with producers located in Australia, New Zealand and Spain, and follows months of speculation on a deal.
It includes Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus and Azpilicueta, with the wine portfolio also containing seven wineries. The Australian Financial Review had also previously reported that Pernod Ricard was in talks to sell its wine interests in the country to Accolade for AU$500 million (£265m), although the sum for this current deal is undisclosed.
The United Workers Union (UWU) said that the action in the Barossa Valley had been taken as workers felt ‘uncertain’ about the deal during a cost of living crisis.
Bargaining
A statement said: “Pernod Ricard is trying to use the sale of its Australian businesses to force a short-term, low-wage deal on workers who are in the middle of enterprise bargaining.”
According to UWU, Pernod Ricard Winemakers’ Australian CEO Bryan Fry visited the Barossa facility, but his comments left workers with “more questions than answers” about their potential futures, and it is currently bargaining with Pernod.
It also said that workers had supported more strike action, with more expected today for 24 hours, according to Daily Wine News.
Tim Kennedy, the national secretary of UWU, also said a fair deal would be maintaining local jobs for South Australian communities.
Greed
Kennedy added that he’s “tasting key notes of corporate greed” and winery workers hadn’t been given a comparable pay rise to profits arriving from rising prices.
“Whilst the CEO at Pernod Ricard sits on an eye-watering salary, workers are struggling to pay their bills,” he said.
The UWU also referred Pernod’s net profits, but this didn’t take into account the wine division, where the French group reported wine sales falling by between 9% and 10% compared with last year, mainly driven by declines in USA and UK. Overall, wine sales, including those sourced from Australia as well New Zealand, Spain and South America comprise just 4% of its turnover.
No impact
Pernod Ricard Winemakers said that the industrial action would not negatively impact its business.
A spokesperson said: “We truly believe that we have provided a fair and reasonable offer to our employees and are disappointed that we have been unable to reach an agreement at this stage.
“This action will not affect production and will have no material impact on our business.”