Global Conference of Dairy Unions commits to monitoring Fonterra actions on workers’ rights

The biggest conference ever held of dairy workers’ unions committed in Argentina on Friday to step up coordinated actions against casualisation and contracting out by the major transnational corporations and other major employers in the industry.

James Ritchie, NZ Dairy Workers Union National Secretary who represented New Zealand at the conference, said: “The conference noted with concern Fonterra’s refusal to allow unions in Sri Lanka and Malaysia access to workers to offer them union membership, and will step up its monitoring activities of the NZ Company in Latin America.”

“In 2002 Fonterra signed an agreement with the International Union of Food Workers (IUF) and the NZDWU guaranteeing ILO standards wherever Fonterra operated around the world. However despite this Agreement, access to Fonterra plants by IUF affiliates has been blocked in Sri Lanka and Malaysia and Fonterra says the Agreement does not apply to joint ventures.”

“There is a determination by IUF affiliates to give all practical assistance to workers denied their right to join a union and bargain collectively in accordance with ILO standards wherever this occurs.”

The conference, which took place in Buenos Aires and Sunchales, Argentina between 9 and 12 March, was convened by the IUF and was attended by 120 participants from 22 countries. The NZ Dairy Workers Union played a lead role in lobbying for the necessity of such a conference in the first place.

Delegates also agreed to take all possible steps to guarantee decent work for workers throughout the supply chain.

Fonterra owns Soprole, the market leader in Dairy in Chile and is a joint partner with Nestle in Dairy Partners of America (DPA) throughout the rest of Latin America.

“The Fonterra part ownership of this company is not widely known in South America and dairy unions will hold both Fonterra and Nestle accountable for the activities of this company with regard to employment standards,” commented Mr Ritchie.

The host organisation for the conference, the Argentina Dairy Workers Union (ATILRA) has a cooperation agreement with the NZ Dairy Workers Union.

The global dairy industry faces multiple challenges in an unstable world and the participant unions are to coordinate actions on the issues of protection of the environment, climate change, food safety, health and safety, employment protection, and decent work and incomes for workers as well as producers (farmers).

All around the world producers are being squeezed by processors and retailers but NZ farmers have a significant advantage in owning Fonterra as well as supplying milk to it. This means the price paid to farmers is significantly higher than in countries where producers do not own their industry. Overcapacity of plant and equipment also reduces the price paid to farmers. This is a significant threat in NZ because of too many start up companies.

The conference expressed solidarity and practical support for the workers in the industry in Chile who were not able to attend the conference due to the recent earthquake.

A smaller group which includes the NZ Dairy Workers Union will meet next month in Geneva to develop an action plan to coordinate the work of IUF affiliates in relation to dairy sector activity.

ENDS

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