South Australia’s Smith Snack Food Workers Unite for Change: Inside the Impact of Their Strike

More than 150 workers at a PepsiCo snack food factory in South Australia are on strike. They are pushing for fair pay that matches what workers earn in Queensland. Since May 8, these workers, organized by the United Workers Union (UWU) and other unions, have staged rolling four-hour stoppages across five shifts.

Recently, 97% of the Adelaide workers turned down the company’s offer of a 12% raise over three years. This figure doesn’t keep up with the rising cost of living. Union officials called the offer “insulting,” yet their own demand of 15% over three years still falls short.

The workers in Adelaide are facing a staggering reality. Inflation in Adelaide rose by 15.9% in the past three years, but the workers’ pay only increased by 2.6% yearly. As a result, their real wages have dropped by over 8%. Since the last wage agreement began in February 2022, when inflation hit 4.8%, workers have lost substantial income. Full-time Level 3 workers earned about $5,200 less in real terms last year than in 2021. Over three years, they could be down more than $11,000.

Real pay losses for these workers have serious implications. If the UWU’s demand for a 15% raise is approved, even with a low inflation scenario, workers would still earn almost $200 less in the final year than if their pay had matched inflation since 2022. This could result in a total loss of nearly $17,000 over two agreements.

Current inflation figures don’t fully reflect the struggles workers face. Housing costs in Adelaide have soared by more than 43%, now averaging $796,000, which is 12 times the annual salary for a full-time Level 3 worker at the factory. Rent prices have also sharply increased.

The UWU has pointed out the wage gaps between the Regency Park factory and a similar facility in Brisbane. However, workers in both locations have seen their wages stagnate despite rising costs. For instance, workers in Brisbane have lost around $3,000 in real pay over their current contract.

The situation at PepsiCo illustrates a broader trend of wage stagnation in the food and beverage industry. PepsiCo is one of the biggest companies in the world, making billions in profit while keeping workers’ pay low. The company recorded a profit of $14.7 billion last year, yet it recently laid off over 1,000 employees in the U.S.

Experts emphasize that this situation is not just about pay; it reflects deeper issues within the capitalist system. As long as major industries are controlled by a few corporations, workers will continue to face job insecurity and declining wages.

Workers at PepsiCo need to come together, not only within Australia but globally. Building a rank-and-file committee could empower them to push for their demands. Such movements have gained traction, as seen in other recent strikes across various sectors, showcasing the collective power of workers.

Ultimately, fighting for fair wages and safe working conditions is intertwined with a larger political struggle for a system that prioritizes workers’ rights over profits.



Source link