Pernod Ricard workers continue strike action

Pernod Ricard winery workers in the Barossa Valley have voted to continue strike action, starting 24-hour rolling stoppages from last week.

The news follows 120 winery workers in the South Australia winery stopping work a fortnight ago to discuss their futures. That decision came after concerns resulting from the announcement that Pernod Ricard Winemakers would sell off its wine brands to Accolade.

The United Workers Union, which has organised the action, said “ambiguity around the impact of the deal on workers has left many feeling uncertain during a cost-of-living crisis”.

It also came during the middle of negotiations between Pernod Ricard and the workers on their next workplace agreement.

Bryan Fry, Pernod Ricard’s Australian CEO, visited the Barossa processing site, but “left workers with more questions than answers about their futures”, the UWU said.

Tough decision

UWU Organiser Ben Reichstein said following “minimal improvement” from the company, “workers have made the tough decision to proceed with rolling 24-hour stoppages”

He added: “This is a big ask for workers who are forgoing pay as they fight for better wages and conditions to support their families and community. We know that good, secure jobs are the lifeblood of our regional communities.

“Workers are committed to continuing the fight until a fair, reasonable, and secure offer is presented to union members, many of whom have shown loyalty and dedication to this multi-million dollar company for over 10, 20, and even 30 years.

“In a cost-of-living crisis, it’s time for workers to be paid a fair share.

Inflation

The union also pointed out last year that Pernod Ricard made a global net profit of $5.6 billion in 2023, and despite CPI rising by almost 16% in the past three years, Pernod Ricard workers’ wages have gone up a only 7%.

“It is clear that inflation has massively outstripped these workers’ wages,” the UWU stated.

But wine sales were only a small part of Pernod’s overall sales last year. In its latest quarterly figures, 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. The portfolio being sold includes Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus and Azpilicueta, as well as seven wineries.

According to Pernod, the deal will allow it to strengthen its premiumisation strategy and direct its resources to its portfolio of premium international spirits and Champagne brands that drive the growth of its business, it said.

Fair deal

UWU National Secretary Tim Kennedy said a fair deal for the workers was vital to maintaining decent jobs on which regional South Australian communities depend.

“I’m tasting key notes of corporate greed,” Mr Kennedy said.

“Profits have been driven by rising prices, yet winery workers haven’t been given a comparable pay rise.”

“These winery jobs sustain our regional communities. For every dollar that is earned, it goes right back into the local community.”

“Our whole union is behind the workers at Pernod Ricard.”

 

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