The union representing workers locked out by Purex manufacturer Essity says the company is threatening 67 employees with more than $500,000 in damages.

The legal threat comes three weeks into a brutal company-imposed lockout at Essity's Kawerau mill, which has prevented 145 members of the Pulp and Paper Workers Union from going to work or getting paid.

The lockout was imposed by the company after wage negotiations broke down over the union's claim for a pay rise equal to the rate of inflation.

Essity's pay offer was for an increase of 14.7 per cent over three years, comprising a 3 per cent increase every year plus an additional cash payment this year, said general manager of the Kawerau mill Peter Hockley last week. Read more here.

'Essity has well-remunerated employees working at Kawerau who are amongst the highest-paid working in manufacturing in New Zealand, earning nearly double the median weekly earnings of New Zealanders.

'Our wage offer maintains attractive conditions, addresses inflation impacts on employees, and is more than fair and reasonable.”

Essity's legal action relates to technicalities over a strike notice issued in July, before the company imposed the lockout.

Strike action in pursuit of a collective agreement is legal in New Zealand and the union believes the company's action is without merit.

Essity is seeking to make 67 individual employees 'jointly and severally liable” with the union for $542,852 of damages plus costs.

Union secretary Tane Phillips says the threat has had a devastating impact on members and their whanau.

'This is an absolute punch in the guts for a group of workers who have already been locked out of their jobs without pay. I've had members call me saying they feel sick to their stomach, they feel like the company is going after their families.

'This is part of a pattern of vindictive behaviour from the Australian management who are trying to break the union and scare our members into giving up," says Tane.

'We are not going to be intimidated by expensive lawyers or bully-boy threats. All we are asking for is for our pay to keep up with inflation. Essity is a large and very profitable company that can easily afford it.

'The company needs to stop the bullying tactics and end the lockout now.”

Union member Bill George says the legal threats are 'a real a kick in the teeth”.

'I'm the only breadwinner and I have a wife as well as two grandkids with disabilities to provide for. We're already hurting from the lockout, and now the company wants to sue us for thousands. I just ask where their humanity is," says Bill.

'All the workers here did the hard yards during Covid to make sure hospitals and supermarkets were supplied, but there's just been no loyalty in return. To be honest I feel betrayed by the company's behaviour.”

Essity is a Swedish-based multinational that made $1.8 billion of profit globally last year. Its brands in New Zealand include Purex, Sorbent, Libra and Handee.

On Friday it was revealed that Essity had instructed the company's superannuation scheme provider, SuperLife, to block workers from making financial hardship withdrawals from their savings.

Roger Coffin, Simon Goddard and PPMU secretary Tane Phillips said an initial offer by Essity was 'insulting”. Photo: Alan Gibson/Stuff.

Maritime workers back locked out Kawerau pulp and paper workers

The Maritime Union of New Zealand is backing locked out pulp and paper workers at the Essity plant in Kawerau.

Maritime Union of New Zealand National Secretary Craig Harrison says workers around New Zealand are swinging in behind the Kawerau workers.

Craig says maritime workers are contributing financially to the locked out workers and will ramp-up support if the employer continues to try and starve the workers into submission.

'These are New Zealand workers who are being subjected to starvation tactics by an overseas owned corporate that makes a lot of money in and from New Zealand.”

Craig says the tactic of the company to prevent hardship withdrawals by the workers from their own superannuation savings is a new low.

He says the workers are simply trying to maintain their wages rather than go backwards as the cost of living rises sharply.

'This is not some big money grab – it is about keeping up with the cost of living, and we know the management and shareholders of Essity are not doing it tough.”

Craig says the pulp and paper workers have been great supporters of other workers in struggle and it was time to repay their solidarity.

'This is a very solid community of essential workers and they deserve the support of all New Zealanders.”