Bega Cheese (ASX: BGA) shares rose around 5% higher today after reporting an end to worker strikes which were threatening to impact manufacturing.
Who Is Bega Cheese?
Bega is one of Australia’s largest dairy businesses and has been producing dairy products since 1900.
These days the company usually sells more than 1 million packs of cheese a day across a variety of brands. Its brands include Bega, Vegemite, ZoOSh and Dairymont. Bega also owns Tatura, a producer of infant formula and cream cheese.
Bega Strikes Called Off
Bega Cheese has not released any announcements this morning but it was reported Wednesday that planned strikes at the Bega Cheese manufacturing facility have been called off.
News emerged last week that hundreds of workers from the Australian Manufacturing Workers’ Union (AWMA), as well as two other unions, were threatening to walk off the job unless their demands for a 3% pay increase was approved.
The action followed Bega’s FY19 report where the company announced 2.7% pay rises for its Board of Directors and 2.5% pay rises for workers. Other conditions were also renegotiated including sick leave and domestic violence support for employees.
With conditions renegotiated and set to go to a formal vote in the next few weeks, the plans for industrial action have been cancelled.
Buy, Hold or Sell?
Bega announced positive results in its FY19 report, revealing revenue growth of 13% and milk intake up 41%. Unfortunately, net profit after tax (NPAT) fell 13% to $38.3 million.
While its good to see the pay issues resolved and a better outcome for workers, Bega Cheese shares do not top my list for potential investments. I think there are better options for growth like the ETF in the free report below.
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Disclosure: At the time of publishing, Max does not have a financial interest in any of the companies mentioned.