Workers have gone on strike over claims of paltry pay at poultry producer Inghams, raising fears of a shortage of cheap chooks at the checkout.
More than 1000 Australian Workers' Union (AWU) and Australian Manufacturing Workers' Union (AMWU) members stopped work for 24 hours at the company's Bolivar site in South Australia and at Osborne Park in Western Australia on Friday in pursuit of a six per cent annual pay rise over three years.
Inghams produces about 40 per cent of Australia's chickens and supplies brands such as McDonald's, KFC and Woolworths.
"Given a live supply chain, prolonged industrial action would be quite disruptive and begin to impact Inghams' ability to supply chickens to its customers," E&P Capital retail analyst Phillip Kimber said in a note to investors.
Mr Kimber expects the parties to reach a compromise, with annual pay rises falling somewhere between the union's claims and management's offer of between 3.45 per cent and 3.9 per cent per year.
AWU national secretary Tim Kennedy cried foul over Inghams treating workers "with contempt" while banking a $60.4 million profit last financial year.
"We know that Inghams is an extremely profitable company and that those profits have more than doubled in recent times, so why is it that the workers who show up to do a difficult job are asked to cop paltry wages?" Mr Kennedy said in a statement.
"An extra $1.50 per hour will barely even register on Inghams' bottom line and workers won't be running out buying yachts or enjoying champagne dinners as a result, but they might just be able to keep up with increased housing costs without falling below the poverty line."
Lynn Walker is a leading hand at Inghams' Bolivar plant in northern Adelaide where she has worked for 22 years.
She says management threatened to lock workers out or remove their positions if they went on strike.
"It makes you feel horrible," the 63-year-old told AAP.
"Not only do they not want to pay us, they want to take our jobs from us."
Ms Walker says she feels undervalued by the company when it can afford to award a nine per cent pay bump to chief executive Andrew Reeves, taking his base salary to $1.2 million per year.
"My rent is $700 a week and I'm getting maybe $950," she said.
"In 22 years I reckon I would have got a $22 pay rise. I'm worth $1 a year."
The union has warned the company of further strike action if demands for an improved wage offer are not met.
KFC says it is working with Inghams on contingency plans for its SA and WA restaurants.
"While the strike is taking place, we don't expect any impact to chicken supply across our restaurants," a spokesperson for KFC said.
Inghams has been contacted for comment.
