KEY POINTS:
Dairy Workers' Union members have settled for a 6.5 per cent immediate pay rise on a new three-year contract covering 4500 milk factory employees, including 1200 tanker drivers.
Fonterra director of milk supply Barry Harris said the deal was a good outcome for both parties reflecting commercial realities and the economic environment.
Fonterra reported revenues of $19.5 billion for the 14 months ended July 31, but has since warned its 10,724 farmers to expect lower payouts than the average $867,213 of last season.
The dairy plant workers and tanker drivers had been threatening industrial action over the pay dispute after asking for an 8 per cent pay increase. Fonterra initially offered 5 per cent as well as a 2.5 per cent lump sum payment.
The union's national secretary James Ritchie said today that in addition to the 6.5 increase in the first year the workers would receive a 1.5 per cent lump sum. For each of the following two years the increase would be 1 per cent above the consumers' price index (CPI).
Mr Ritchie said the union would discuss with Fonterra before Christmas problems it has said are affecting milk collection from farms.
- NZPA
