The Australian Manufacturing Workers Union (AMWU) is reportedly planning to call on the public to boycott the Streets ice-creams brand.
The Unilever-owned brand has drawn the ire of the union over its plans to terminate the current enterprise agreement at the Streets factory in Minto NSW.
AMWU says it will urge the public to boycott its products if the proceeds with its application in the Fair Work Commission to terminate the existing enterprise agreement, according to media reports.
If the termination is successful, the AMWU says, workers will have their pay slashed by 46 per cent, and will have their overtime penalties and their redundancy entitlements cut.
However Unilever denies the claim. “The suggestion by unions that Unilever will or may reduce the take home pay of any employee by 46 per cent has no basis in fact. Having been at the centre of negotiations for more than 16 months the Australian Manufacturing Workers Union should be aware of this.”
“As part of the Fair Work Commission process employees, the AMWU and Unilever and will all get to have a say and be heard.”
Unilever also said that the costs of production at the Minto site remained high and not competitive when compared with other ice cream manufacturers.
“That is not a sustainable position,” the company said.
“The decision to make an application to the FWC for termination of the expired EA made after careful consideration of all options to create more flexible working conditions and enhance the competitiveness and viability of the factory in the longer-term, which is ultimately in the best interest of employees and the company.”