‘Insulting’ pay offer spurs Doritos and Smith’s Chips workers to strike

South Australian workers who make Doritos and Smith’s Chips have turned to industrial action after being presented with an “insulting” pay rise by food giant PepsiCo.

Around 150 workers in South Australia responsible for creating well-known Australian snacks, including Doritos and Smith’s Chips, opted for a strike action equating to four-hour stoppages after “being slapped in the face” with an “insulting” pay offer by overarching food giant PepsiCo.

According to the United Workers Union, South Australian workers previously received 2.6 per cent pay increases over three years, totalling 7.8 per cent. However, the union claims that over the last three years, annual inflation in Adelaide has totalled 15.9 per cent, meaning workers’ real wages have fallen behind by more than 8 per cent.

On top of that, the union claimed that the South Australian workers’ Queensland counterparts earn 12 per cent more while making identical products sold at identical prices. With PepsiCo making $2 billion in revenue and $106 million in profits in 2023, the union has pointed out the sheer absurdity of apparent “inequality”.

“A level 3 worker would need to work for 740 YEARS to earn what global chief executive Ramon Laguarta pockets in a single year ($49.3 million),” said the union in a press release statement.

United Workers Union director of food and beverage Mel Gatfield argued that workers aren’t asking for a massive pay rise – instead, they need a new standard set that allows them to survive in contemporary economic conditions.

“The workers simply want to keep their heads above water as they work hard. Same rate, each state – is that really too much to ask from a billion-dollar global empire?” Gatfield said.

“PepsiCo promise to be ‘Faster, Stronger and Better’ – but for whom? Certainly not for the Australian workers being crushed under their corporate boot while executives enjoy obscene wealth.”

“PepsiCo’s greed isn’t just hurting its workers – it’s damaging the entire South Australian economy. These 150 workers spend their hard-earned wages in local shops, cafes, and businesses across Adelaide and beyond. With their pay already 12 per cent below their interstate colleagues, every dollar matters.”

“You can’t claim to make ‘the People’s Chip’, when undercutting mums, dads, brothers, and sisters.”

United Workers Union-aligned workers began their four-hour stoppages last Thursday, 8 May – which the International Union of Food (IUF) Asia-Pacific regional secretary Hidayat Greenfield claims sends a message that “enough is enough”.

“PepsiCo is squeezing every cent from workers while refusing to offer a fair deal. These are the very people who built this billion-dollar company’s success,” said Greenfield.

“The workers are sending a clear message to PepsiCo: enough is enough.”