Rumours that Fontera Foods were about to shutdown down their Peters Ice Cream factory in Balcatta proved true when they recently sounded the death knell on the iconic WA business. The NZ firm had taken over the Peters & Brownes business about five years back and things started going backwards soon after. Their Australian ice cream business has been sold to Nestlé and Bulla Dairy Foods. Peters products will now be made over east and carted across the Nullabor by road.

The closure of the Balcatta operation is due to be completed by September. Peters ice cream has been made in WA for more than 80 years and it will be a sad day for the state when the factory closes.

And even sadder for the 140 people who will lose their jobs.

Of course things would have been far worse if the company wasn't as strongly unionised as it has been. The redundancy conditions negotiated by the TWU are excellent and some of those to lose their jobs will walk away with a lot of money. Long-termers will receive as much as 104 weeks pay - and walking away with
a barrow load of cash will suit quite a few of them.

Of course younger people with large mortgages and other financial commitments will find the going a lot tougher.

The company has initiated a program to assist employees with counselling and job seeking advice.

Fonterra's instability in WA is bound to continue with the news that they have also put their Brownes milk, cheeses and yoghurt business on the market.

STOP PRESS

With the wind-down of the Peters factory about to begin we've been haggling over what pay rate the redundancy payments would be paid out at. Our Peters members have been on annaulised salaries for quite a few years. These rates include overtime and shift penalties, etc and are a lot higher than the ordinary time rates. The higher rates are paid when people go on sick and annual leave and we contend they should be used for the redundancy payouts.

Fonterra disagree and say they will pay at the much lower single time rates.

We'll probably take the issue to the industrial court