In response to news that beverage conglomerate Pernod Ricard plans to sell a significant portion of its wine brands to Australian Wine Holdco Limited (AWL), the workforce at Rowland Flay Winery staged two strikes within a week. The winery, which produces brands such as Jacob's Creek and St. Hugo, first halted operations for four hours on July 24 to discuss the employees' job prospects. Six days later, workers from the morning, afternoon, and night shifts initiated a 24-hour walkout, primarily impacting the processing and packaging operations on the production line.
According to the United Workers Union (UWU), employees are uncertain about how Pernod Ricard’s sale will impact their jobs and feel uneasy amid the ongoing cost of living crisis. The union claims that Pernod Ricard is attempting to “leverage the sale of its Australian business units to pressure workers, who are currently in the middle of contract negotiations, into accepting a short-term, low-wage agreement.” While Bryan Fry, the Australian CEO of Pernod Ricard, did visit the South Australian facility, he reportedly left workers with “more questions than answers about their future.”
"This action will not affect production and will have no material impact on our business."
In its press release, the United Workers Union (UWU) pointed to Pernod Ricard's billion-dollar net profit in 2023 and the CEO's $3.7 million salary, noting that these gains were not matched by comparable wage increases for employees. Tim Kennedy, the National Secretary of the UWU, referred to this situation as a clear example of "corporate greed." However, it is worth noting that Pernod Ricard's wine division experienced significant sales declines in 2023 and now accounts for just over 4% of the company’s total revenue. This was a key factor behind the company's July 17 announcement that it would divest ten of its popular wine brands and refocus resources on its portfolio of international premium spirits and champagne brands.
In response to the strike, a Pernod Ricard spokesperson stated, “we truly believe that we have provided a fair and reasonable offer to our employees and are disappointed that we have been unable to reach an agreement at this stage. As a business we are committed to maintaining an open dialogue with our employees to find a resolution that balances employee needs with the current industry and business requirements. This action will not affect production and will have no material impact on our business.” SP
