(Photo: United Workers Union)
Last week, 120 workers at a Pernod Ricard winery in Barossa Valley, Australia, recertified a strike that'll bring rolling stoppages to brands including Jacob's Creek and St Hugo.
The move comes weeks after Pernod — the eighth-largest alcohol conglomerate in the world by market cap — announced the sale of nearly a dozen international wine brands. The deal, expected to close by the end of 2025, has left affected employees in a state of "ambiguity" regarding cost-of-living concerns.
“With minimal improvement from the company, workers have made the tough decision to proceed with rolling 24-hour stoppages," United Workers Union organizer Ben Reichstein commented in a news release. "This is a big ask for workers who are forgoing pay as they fight for better wages and conditions to support their families and community."
The strike will impact processing and packaging operations across the entire production line. UWU's efforts coincide with ongoing negotiations on a future workplace agreement.
Best known for brands including Beefeater Gin, Chivas Regal Whisky and Havana Club Rum, Pernod has taken a scaled-back approach to its wine arm over the past few years. According to Reuters, wine composed only 4% of the French company's total sales in 2023. With the offloading of Jacob's Creek, St Hugo and other Australian imprints, the company seems to be pivoting hard into its premium liquor portfolio.
Though the financials of the deal were not disclosed, Pernod claims that the affected brands collectively sell 10 million 9-liter cases per year.
Elsewhere, the spirits firm has taken an upbeat outlook in an otherwise gloomy market. Pernod reported 10% organic sales growth in 2023, defying projections and carrying its global net profit to $5.6 billion.
Employees reportedly haven't gotten a piece of the pie. UWU claims that worker's wages have only gone up 7% in the past three years, during which time the consumer price index has risen by nearly 16%.
“I’m tasting key notes of corporate greed,” UWU National Secretary Tim Kennedy said. “Profits have been driven by rising prices, yet winery workers haven’t been given a comparable pay rise. Whilst the CEO at Pernod Ricard sits on an eye-watering salary, workers are struggling to pay their bills."
