Simplot in wages stoush

Simplot has become embroiled in a pay dispute with workers at its vegetable processing plant in Ulverstone, Tasmania over a new wages agreement.

The company wants to rein in costs to ensure the future viability of its plants, some of which it said last year were at risk of closure due to the high cost of labour and production in Australia and competition from cheap imports.

Unions, however, imposed work bans on overtime at Ulverstone over the weekend after negotiations failed.

Simplot is Tasmania’s last remaining vegetable processor, and its managing director Terry O'Brien told ABC Rural that he did not know what the fate of the business would be if the union failed to negotiate.

"All I'll point out is that every one of our competitors has left. So they did close. So everything's possible," he said.