Supplies of poultry meat in Australia could be disrupted if threatened strike action by Ingham’s workers goes ahead later this week.
More than 1,000 Ingham’s poultry plant workers are threatening to strike on Friday (September 22), reports 7News.
Joining the industrial action for 24 hours are employees who are members of the United Workers Union (UWU) at processing facilities in South Australia and Western Australia.
So far, their demand for a 6% pay increase annually over the next three years has not been agreed by Ingham’s management.
According to the report, the firm’s hourly average wage is currently AUD25.00 (US$16.24). Workers are asking for a rise of around AUD1.50.
Since the start of the year, negotiations have been ongoing to reach agreement over future wage levels as the cost of living rises.
So far, the union alleges, the company has not offered a “respectable agreement.” This is despite a reported 72% increase in Ingham’s net profit for the past year to AUD1 billion, the UWU says.
Industrial action could result in national chicken shortage
If Ingham’s and the UWU cannot reach agreement over future pay levels, the strike could be prolonged.
That could soon mean a shortage of fresh chicken in Australia, according to News.com.
As the country’s largest poultry meat producer, Ingham’s supplies retailers such as Woolworths, Coles and Aldi, as well as fast-food giants KFC, McDonald’s and Subway.
Within a short time, the strike will also begin to impact the wider supply chain, including the firm’s chicken farmers, said a top UWU official.
The company may have to increase its current offer of an increase of less than 4% per year if it is to heal the rift in industrial relations.
More on Ingham’s
With annual slaughterings of 230 million birds, Ingham’s Enterprises Pty Ltd is the largest poultry company in Oceania, according to WATTPoultry.com’s Top Poultry Companies survey.
In the company’s annual results for the 2023 fiscal year, Ingham’s reported an overall drop in the volume of its sales in Australia. However, profit was higher than in the previous 12 months. For Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA), the year-on-year increase was 13% at almost AUD419 million.
Earlier this year, Ingham’s announced its intention to acquire a hatchery business in New Zealand.
Within the past few days, it has announced the purchase of a new poultry farm in New South Wales, Australia.
