Foster's Group is facing the possibility of industrial action at its largest brewery in Australia.

A spokesperson for the company confirmed to just-drinks today (11 September) that it is in negotiations with workers at its Yatala brewery in the country to head off the possibility of a strike at the facility.

The brewery has had what the spokesperson described as "an employee collective agreement" in place since it began operations 19 years ago. Workers at Yatala now want to change this to a union collective agreement, as well as demanding a review of wages and conditions.

"We're still in negotiations and are hopeful of a positive outcome," the spokesperson noted. "We believe we have made a very good wages and conditions offer to our employees at Yatala."

The facility is the largest of three breweries operated by Foster's in Australia, and brews beers across the company's portfolio, including VB and Crown. With 300 employees, Yatala has an annual capacity of over 50m nine-litre equivalent cases.

The employees have warned that they intend to issue an application for seeking protective action, which would allow them to legally strike.

Asked if any industrial action would affect Foster's supply chain in the country, the spokesperson said: "We hope we don't get to that point."