Vic milk workers strike new deal

Employees who were locked out of a Victorian milk processing plant for 11 days will be able to return to work after striking a deal, their union says.

Longwarry Foods has been involved in a pay dispute with 50 union workers since July 5, but after weeks of meetings, the National Union of Workers announced on Friday a deal had been struck.

Workers will now see a 9.6 per cent wage increase over three years, RDOs and long service leave increases.

"We've got a good pay rise, we've got industry standard long service leave, which we didn't have before," Union secretary Gary Mass told AAP.

"Christmas Day, Good Friday, Easter Sunday we'll get triple time instead of double time and a half - massive wins."

Contract workers will also see a pathway introduced to give them the chance to become permanent workers.

Workers had been protesting outside Longwarry Foods in the state's south east for days, calling for better working conditions and to return to work.

"We've got guys with young children, wives that stay at home that aren't working, and those guys did it pretty tough," Mr Mass said.

Longwarry employs approximately 30 workers in full time permanent positions and indirectly employs approximately 20 through a labour hire agency, according to the union.

Many of the casual workers were working full time hours for years, the union said, and hoped to find more stable work with the company.

Longwarry Foods was recently purchased by Parmalat, one of the country's biggest milk producers.

Parmalat has been contacted for comment.