Tip Top eyes pay cut to offset losses

Truck drivers working for bread maker cop it in the hip pocket as the company grapples with tough conditions

By Ruza Zivkusic-Aftasi | August 29, 2012

Truck drivers working for bread maker Tip Top are set to cop significant pay cuts as the company looks for savings to cope with the loss of its customers and challenging market conditions.

Up to 200 contractors have been protesting outside Tip Top’s offices in New South Wales and Australian Capital Territory since yesterday against proposed pay cuts, which may hit 30 percent in some cases.

Tip Top is standardising all of its contracts and changing its network distribution model due to fewer customer drops. A statement from the company says existing contracts will ensure conditions are "commercial and equitable".

Transport Workers Union (TWU) Canberra Secretary Klaus Pinkas says the workload of some drivers has increased by 30 percent but they face a pay cut of 50 percent.

"Of course they’re upset, this has happened without any indication," Pinkas says.

"If they don’t like it they have received 13 weeks’ notice on their contract to take the new rates and new runs or ‘see you later’."

Pinkas wants Tip Top to halt any planned changes until management sits down with TWU representatives to "negotiate a reasonable contract".

Tip Top says the company regrets some of its contractors will be adversely affected by the changes.

"Tip Top has provided all individual distributors with reasonable notice in line with their existing contracts and is now actively engaged in discussion with these distributors and working to resolve any concerns regarding individual delivery runs in a timely manner," she says.

"These changes are necessary to enable the continued delivery of high-quality fresh bread to Australian consumers and to help sustain and future-proof one of the biggest employers in this country."

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