Strike looms at Toll after workers vote
Talks between the Transport Workers Union and Toll became bogged down in July over matters including job security, superannuation payments and outsourcing of work.
It led to the union applying to the industrial umpire to carry out a ballot of members who worked at Australia's largest listed transport company.
The results of that ballot, released on Tuesday, show about 85 per cent of the 2920 votes received were in favour of protected industrial action. It can include work stoppages of between one and 72 hours.
The possibility of workers exercising their right to take industrial action threatens to disrupt the supply chains of retailers throughout the country. Toll transports goods for retailers including Coles and Woolworths.
The enterprise agreement covers about 10,000 workers at Toll - about 8000 of whom are TWU members.
TWU national secretary Tony Sheldon said the vote sent a clear signal that Toll workers would not agree to a second-rate deal. "It's always been our intention to reach an agreement with the company that our members can vote on, but after more than 100 hours of negotiations we still remain some distance apart," he said.
The main sticking point has been whether Toll will allow the enterprise agreement to be extended to new work, especially in warehousing. The union argues that the company has created new business units that pay lower rates.
Despite the threat of strike action, negotiations between the company and the union are continuing.
The union's negotiators will meet shortly to discuss the scope of industrial action in the event that the deadlock is not resolved.
Toll emphasised that the result of the ballot did not mean strike action was inevitable.
Toll chief executive Brian Kruger told investors last week that the two sides were close to reaching an agreement over a new four-year deal.
Mr Kruger has said he believes there is a solution to the main sticking point over the enterprise agreement's coverage, and has emphasised there was not a big disagreement over wages.
Toll has offered a 3 per cent increase in the first year of the new agreement, following by yearly rises of 4 per cent for the remainder of the four-year deal.
It has also offered to increase superannuation contributions by 0.75 per cent to 12.25 per cent, and to make at least 300 casual workers permanent in the first year of a new agreement.
The union wants super to be increased to 15 per cent by the end of the four-year agreement.
Frequently Asked Questions about this Article…
Toll Holdings staff voted overwhelmingly in favour of protected industrial action after talks with the Transport Workers Union (TWU) stalled over a new enterprise agreement. The dispute centres on job security, superannuation payments and outsourcing, and the ballot result signals workers' frustration with the lack of progress.
The enterprise agreement covers about 10,000 Toll workers (around 8,000 are TWU members). The industrial umpire ballot received 2,920 votes, and roughly 85% of those were in favour of protected industrial action.
Protected industrial action is legally sanctioned action that can include work stoppages; under the rules it can be for between one and 72 hours. If exercised, such stoppages could disrupt parts of Toll’s operations while the action is in place.
Yes. The article says the possibility of industrial action threatens to disrupt supply chains for retailers that rely on Toll — including major supermarket customers such as Coles and Woolworths — which is a risk investors should monitor.
Toll has offered a four‑year deal with a 3% pay increase in year one followed by 4% rises in subsequent years. It also proposed increasing superannuation contributions by 0.75 percentage points to 12.25% and making at least 300 casual workers permanent in the first year.
The TWU wants the enterprise agreement extended to new work — especially warehousing — and argues Toll has set up new business units that pay lower rates. The union is also pushing for a larger superannuation increase (seeking 15% by the end of the four‑year agreement).
Negotiations are continuing. The union's negotiators plan to meet to discuss the scope of any industrial action if deadlock persists, but Toll has emphasised the ballot result doesn't make a strike inevitable. CEO Brian Kruger told investors the parties were close to a new four‑year deal and that the main coverage issue may have a solution.
Investors should watch company and union announcements about negotiation progress, any confirmed dates or scope of protected industrial action, and updates on potential operational impacts — especially disruption to key customers like Coles and Woolworths — as these developments could affect Toll's business performance.
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