Pernod Ricard has reached an agreement with staff of its Rowland Flat winery that will see it provide improvements to wages and benefits in exchange for workers ending their current industrial action.
These benefits include a 5% increase to wages backdated to 1 July, a $1,274 bonus payment, a tiered payout of personal leave upon termination of employment, and an additional day of annual leave per year.
This morning, Drinks Trade reached out to Pernod Ricard to hear their thoughts on the deal.
“We truly believe that we have provided a fair and reasonable Enterprise Agreement offer, including a fair wage increase. We are moving into the final steps of the process," said a spokesperson for Pernod Ricard.
Responsible for producing ex-Pernod Ricard wine brands such as Jacob’s Creek and St Hugo, the 120 employees of the Rowland Flat winery that initiated a strike action on 30 July cited reasons such as job insecurity, and discrepancies between inflation, net profits, and wage growth. The protests began just one week after Pernod Ricard announced that it had successfully reached an agreement with Wine Holdco Limited – the consortium of international institutional investors that owns Accolade Wines – concerning the sale of 10 of its wine brands. Since then, Rowland Flat winery workers voted to initiate rolling 24-hour strike action last Wednesday 7 August.
“With minimal improvement from the company, workers have made the tough decision to proceed with rolling 24-hour stoppages,” said Ben Reichstein, Organiser at the United Workers Union.
“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.”
Pernod Ricard’s sale includes Australian brands Jacob’s Creek, Orlando, and St Hugo, New Zealand brands Stoneleigh, Brancott Estate and Church Road, and Spanish brands Campo Viejo, Ysios, Tarsus and Azpilicueta. Drinks Trade recently asked Kristy Rutherford, Marketing Director for Pernod Ricard Pacific, what Australian consumers and industry workers should expect following the completion of the transaction.
“Our business and all the teams involved will be working with retailers and our partners to ensure a seamless transition, so I think as far as retailers and consumers are concerned, the aim is that they can still access the great wines of quality that we currently have into the future,” she said.
“Regardless of who owns it in the future, it’s still a very special brand with great heritage that I think a lot of people within the Pernod Ricard business will think fondly of. It’s always going to be a great legacy brand for us.”
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