12th April 2012

Update on Industrial Dispute at Affco

Affco New Zealand Limited and the NZ Meat Workers and Related Trade Unions will meet again today in Auckland for mediation on the Collective Agreement. The Union has been casual in its approach to negotiations and mediation, and has cut short every session to date.

Since the Collective expired on 31st December 2011 the Union has issued 15 strike notices. These strikes impact all staff covered by the Collective. The majority of Affco employees are not impacted by the dispute and are continuing normal duties.

Affco believes the company is being targeted by the CTU and NZ Meat Workers Union because of the dwindling union membership at Affco’s operations. The Union has already stated the dispute is not about wages but about the authority the Union has over the operations of the company and ability to influence or retain members. Affco remains open to constructive discussion with the Union in good faith. Through bargaining the Company wants a clear, modern, flexible collective that is not subject to continual legal challenges by the Union.

Some parts of the current Collective Agreement date back decades. The meat industry is facing tough times and to preserve jobs over the longer term the Union has to take a modern approach.

Affco has critical commercial reasons to challenge the current collective provisions from the Union including:

1. The company’s right to determine with flexibility the setting of manning and process line speeds.
2. The company’s right to set final determination in operational parameters for processing lines when new technology is introduced.
3. The company’s claim to adhere to a proper dispute resolution process.
4. The company’s right to use scientifically accurate methods of drug testing.
5. The company’s right to train new and existing employees underlined as a prerogative of Affco’s management.

Between bargaining starting and the expiry of the Collective Agreement in December 2012, the Union held two illegal strikes, which Affco successfully challenged in the Employment Court. The union is being misleading in referring to the workers as locked out, as they are also on strike.

The union has instigated ongoing strike action on three fronts:

1. A total ban on overtime;
2. A total ban on training; and
3. Rolling strike action involving the withdrawal of labour for two days per week, which is being renewed every week. This has been on-going now since late February.

The Union has not been up front with communities about the impact that its ongoing strike action is having. Its actions have seen a number of staff resign from the Union and they are back working on Individual Employment Agreements.

Lockout Notices:


Affco issued the lockout notices on the 29th February 2012 to around half the Union members, mainly those participating in or intending strike action.

Affco has invited some of the original locked out workers back to normal duties but is retaining lockout notices against some union members in the face of on-going strike action and a failure by the Union to show any movement in bargaining.

The Company advised employees on 15 March 2012 that continuing to strike in the period up to and just after Easter, from the 19 March to the 16 April, would result in a lockout notice being issued for the statutory holidays.

ENDS

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