A big drop in profits from products sold on the supermarket shelves is believed to be behind a decision by Coca Cola Amatil to cut employee wages by up to 38 per cent. Workers from the food and beverage giant are the latest victim in a vicious cost-cutting war being fought by retails desperate to secure market share in Australia's cut throat marketplace. Victorian warehouse workers are set to face a new pay structure which will see pay freezes in 2015 and new employees paid 38 percent less than their other colleagues for doing the same work. A big drop in profits from products sold on the supermarket shelves is believed to be behind a decision by Coca Cola Amatil to cut employee wages by up to 38 per cent. Existing employees will also have a pay freeze . Beverage giant, Coca Cola Amatil has penned a deal with it's Victorian workers which sees the implementation of a pay freeze, while new employees will have to work for 38% less. The company said the idea behind the pay review is to restore the business to a sustainable earnings growth. But analysts say the decision to freeze and slash wages can be attributed to the 'retail squeeze' which is happening across the industry. Following profit losses in 2013, Coca Cola Amatil reported a net profit after tax of $502.8 million but that was a decline of 9.6 per cent on 2012. It’s been put down to difficult trading conditions in the Australian grocery channel which saw a 9.3% decline in the Australian beverage earnings. ‘There’s a retail squeeze and it’s happening right now,’ said a spokesperson for the Australian food and grocery council. ‘There’s rising costs such as electricity and the Australian dollar but the retail end is not having much prices increases. The aggressive push for efficiencies are relentless and creating retail price wars.’ ‘All companies are going through this squeeze, making painful adjustments  to meet market dynamics. A clear impact on jobs in Australia, declining employment numbers and also companies looking to consolidate,’ he said. Victorian Workers from the food and beverage giant are the latest victim in a vicious cost-cutting war being fought by retails desperate to secure market share in Australia's cut throat marketplace . Much cheaper overseas : Like many manufacturing companies in Australia they send their operations overseas due to cheaper costs. The San Miguel beer bottling plant, rear view, Manila, Philippines(pictured) A Coca Cola Amatil spokesperson says its concentrating on a number of factors to better the company and its bottom line. 'Strengthening our brand portfolio; optimising revenue management; redesigning the route to market model to better cater to the needs of our customers and reducing the cost base to strengthen our competitive position,' they said. 'CCA has an existing EBA covering the Victorian warehouse which has recently been negotiated. This EBA was agreed to by the employees and approved by the Fair Work Commission.' 'These new rates are still above the relevant award. Existing employees under the agreement are not subject to these new rates.' But the company has said there are no immediate plans to freeze wages across CCA and all current employment arrangements with existing employees remain unchanged. Coca Cola Amatil Managing Director Terry Davis delivers the company's full year. They dipped 9.6% from 2012 to 2013 . ACTU president Ged Kearney believes we are seeing large employers quite emboldened by current government. 'Labour productivity is the strongest in years, but labour growth is low. Cost of living is going up and workers share of the pie keeps getting smaller,' she said. 'Large companies like Coke are putting the burden of their business onto workers.' Ms Kearney said members had major concerns about their living standards falling behind. 'Nobody wants to see their wages go backwards because you can't afford the ramifications. A job that doesn't help to have a dignified living is not a good job, she said. Blaming the labor government, Ms Kearney says a raft of legislation right across the board is swinging the power back to employers while workers are left to suffer with less security, pay and lower living standards. 'Research found the way to stimulate the economy is to raise wages, but the Abbott government is thumbing it's nose at that.' 'It's not fair. It does not make economic sense.' Director of National Workplace Relations at the Australian Industry group, Stephen Smith says there seems to be very modest outcomes across most sectors . 'Some enterprise agreements include lesser wages and conditions for new staff, to those enjoyed by current staff,' he said. The new changes provide a stark warning of the pressure on wages across the economy. 'This is a legitimate and sensible approach for companies to take where they have implemented generous wages and conditions in more prosperous times, but find that those wages and conditions are unsustainable for the future given the more difficult operating environment.' While the average wage in Australia is still growing, incomes aren't growing as fast as they were years ago, according to economists. 'Consumers are more conservative, we've got relatively high currency depressing our export rates, with a soft labour market rising the unemployment market,' said Westpac senior economist Justin Smirk. 'We've come through a period of strong income growth particularly from 2004 to 2008 and we've come through realistically fairly strong in terms of income in the last decade.' 'Income growth is likely to be slower and will continue for a number of years,' he said. Mr Smirk said GDP(gross domestic product) is linked and circular. workers in a Coca Cola bottling factory. The beverage giant has penned a deal with it's Victorian workers which sees the implementation of a pay freeze, while new employees will have to work for 38% less. 'Research found the way to stimulate the economy is to raise wages, but the Abbott government is thumbing it's nose at that.' ACTU president Ged Kearney feels the new pay structure is unfair . 'The better productivity we have the faster GDP growth and the faster income growth,' he said. 'On average some industries grow stronger, other sectors are lagging behind such as manufacturing and tourism services which are under pressure from the Australian dollar but it's mixed across all industries.' Daily Mail Australia called the United Voice Union, who represent some members at Coke's Victorian warehouse, but they declined to comment on the issue. But Coke are not the only ones to drop their wage increases and implement pay freezes. Car Manufacturer Holden in Adelaide pressured its workers to accept a wages freeze last year, in a bid to keep the company manufacturing in Australia. Kellogg's was also criticised after it tried to persuade workers to open up their workforce agreement to allow reduced wages and conditions to be implemented. Australian Bureau of Statistics wages index .
Aggressive competition is forcing companies to reduce wages for their workers .
Wages set to be slashed for Victorian workers at Coca Cola Amatil with a new pay structure comes into place .
Coke has penned a deal to implement a pay freeze, while new employees will have to work for 38% less .
The Australian Food and Grocery Council says there's a profit squeeze on in the retail sector .
No immediate plans to freeze wages across other warehouses yet .
Unions claim the cut isn't fair and doesn't make economic sense .
Income growth is slowing and is expected to continue for a number of years .
A big drop in profits from products sold on the supermarket shelves is believed to be behind a decision by Coca Cola Amatil to cut employee wages by up to 38 per cent. Workers from the food and beverage giant are the latest victim in a vicious cost-cutting war being fought by retails desperate to secure market share in Australia's cut throat marketplace. Victorian warehouse workers are set to face a new pay structure which will see pay freezes in 2015 and new employees paid 38 percent less than their other colleagues for doing the same work. A big drop in profits from products sold on the supermarket shelves is believed to be behind a decision by Coca Cola Amatil to cut employee wages by up to 38 per cent. Existing employees will also have a pay freeze . Beverage giant, Coca Cola Amatil has penned a deal with it's Victorian workers which sees the implementation of a pay freeze, while new employees will have to work for 38% less. The company said the idea behind the pay review is to restore the business to a sustainable earnings growth. But analysts say the decision to freeze and slash wages can be attributed to the 'retail squeeze' which is happening across the industry. Following profit losses in 2013, Coca Cola Amatil reported a net profit after tax of $502.8 million but that was a decline of 9.6 per cent on 2012. It’s been put down to difficult trading conditions in the Australian grocery channel which saw a 9.3% decline in the Australian beverage earnings. ‘There’s a retail squeeze and it’s happening right now,’ said a spokesperson for the Australian food and grocery council. ‘There’s rising costs such as electricity and the Australian dollar but the retail end is not having much prices increases. The aggressive push for efficiencies are relentless and creating retail price wars.’ ‘All companies are going through this squeeze, making painful adjustments to meet market dynamics. A clear impact on jobs in Australia, declining employment numbers and also companies looking to consolidate,’ he said. Victorian Workers from the food and beverage giant are the latest victim in a vicious cost-cutting war being fought by retails desperate to secure market share in Australia's cut throat marketplace . Much cheaper overseas : Like many manufacturing companies in Australia they send their operations overseas due to cheaper costs. The San Miguel beer bottling plant, rear view, Manila, Philippines(pictured) A Coca Cola Amatil spokesperson says its concentrating on a number of factors to better the company and its bottom line. 'Strengthening our brand portfolio; optimising revenue management; redesigning the route to market model to better cater to the needs of our customers and reducing the cost base to strengthen our competitive position,' they said. 'CCA has an existing EBA covering the Victorian warehouse which has recently been negotiated. This EBA was agreed to by the employees and approved by the Fair Work Commission.' 'These new rates are still above the relevant award. Existing employees under the agreement are not subject to these new rates.' But the company has said there are no immediate plans to freeze wages across CCA and all current employment arrangements with existing employees remain unchanged. Coca Cola Amatil Managing Director Terry Davis delivers the company's full year. They dipped 9.6% from 2012 to 2013 . ACTU president Ged Kearney believes we are seeing large employers quite emboldened by current government. 'Labour productivity is the strongest in years, but labour growth is low. Cost of living is going up and workers share of the pie keeps getting smaller,' she said. 'Large companies like Coke are putting the burden of their business onto workers.' Ms Kearney said members had major concerns about their living standards falling behind. 'Nobody wants to see their wages go backwards because you can't afford the ramifications. A job that doesn't help to have a dignified living is not a good job, she said. Blaming the labor government, Ms Kearney says a raft of legislation right across the board is swinging the power back to employers while workers are left to suffer with less security, pay and lower living standards. 'Research found the way to stimulate the economy is to raise wages, but the Abbott government is thumbing it's nose at that.' 'It's not fair. It does not make economic sense.' Director of National Workplace Relations at the Australian Industry group, Stephen Smith says there seems to be very modest outcomes across most sectors . 'Some enterprise agreements include lesser wages and conditions for new staff, to those enjoyed by current staff,' he said. The new changes provide a stark warning of the pressure on wages across the economy. 'This is a legitimate and sensible approach for companies to take where they have implemented generous wages and conditions in more prosperous times, but find that those wages and conditions are unsustainable for the future given the more difficult operating environment.' While the average wage in Australia is still growing, incomes aren't growing as fast as they were years ago, according to economists. 'Consumers are more conservative, we've got relatively high currency depressing our export rates, with a soft labour market rising the unemployment market,' said Westpac senior economist Justin Smirk. 'We've come through a period of strong income growth particularly from 2004 to 2008 and we've come through realistically fairly strong in terms of income in the last decade.' 'Income growth is likely to be slower and will continue for a number of years,' he said. Mr Smirk said GDP(gross domestic product) is linked and circular. workers in a Coca Cola bottling factory. The beverage giant has penned a deal with it's Victorian workers which sees the implementation of a pay freeze, while new employees will have to work for 38% less. 'Research found the way to stimulate the economy is to raise wages, but the Abbott government is thumbing it's nose at that.' ACTU president Ged Kearney feels the new pay structure is unfair . 'The better productivity we have the faster GDP growth and the faster income growth,' he said. 'On average some industries grow stronger, other sectors are lagging behind such as manufacturing and tourism services which are under pressure from the Australian dollar but it's mixed across all industries.' Daily Mail Australia called the United Voice Union, who represent some members at Coke's Victorian warehouse, but they declined to comment on the issue. But Coke are not the only ones to drop their wage increases and implement pay freezes. Car Manufacturer Holden in Adelaide pressured its workers to accept a wages freeze last year, in a bid to keep the company manufacturing in Australia. Kellogg's was also criticised after it tried to persuade workers to open up their workforce agreement to allow reduced wages and conditions to be implemented. Australian Bureau of Statistics wages index .
workers are set to face a new pay structure which penned a deal with it's Victorian workers which new employees will have to work for 38% less. The Coca Cola Amatil spokesperson says its concentrating on a number of factors to better immediate plans to freeze wages across CCA and economic sense.' Director of National Workplace income in the last decade.' 'Income growth is likely to be slower and will continue for a implementation of a pay freeze, while new