Kawerau loo paper lockout to end

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

The nearly six week lockout at Purex manufacturer Essity's Kawerau mill will come to an end on Monday.

This news comes after members of the Pulp and Paper Workers Union voted this morning to accept a revised offer from the company.

The 145 workers were locked out on August 9 after the company refused to offer a pay deal which would meet the rising cost of living.

The company's revised offer matches a recommendation from the Employment Relations Authority that followed several days of facilitated bargaining.

The deal keeps workers' incomes ahead of forecast inflation for the next three years, with a five per cent increase and a $4000 lump sum in 2022, a 4.5 per cent increase and a $3000 lump sum in 2023 and a four per cent increase in 2024.

Union secretary Tane Phillips says workers are relieved to have secured a fair deal and for the lockout to be over.

'This has been the most brutal behaviour from a company I have seen in years. They just threw everything at our members.

'Essity locked out our members for nearly six weeks without pay to try to starve them out. The company blocked them from accessing their own retirement savings. And when that wasn't enough they targeted individual workers with more than half a million dollars in legal threats.

'But while the company's behaviour has been ugly, our members refused to be intimidated and have stood strong right through.

'We have been overwhelmed by the support and donations from the Kawerau community and people all across New Zealand. This is a lesson for big overseas corporates who think they can bully Kiwi workers that the community won't tolerate it.

'I also want to thank the Council of Trade Unions for its support through this dispute, as well as the Swedish unions and the global union body IndustriALL for putting pressure on Essity's head office in Stockholm.

'This is a big improvement on the company's original offer, which would have seen our members' pay go backwards in real terms. We have achieved what we set out to, which was for our members' pay to keep up with inflation. It shows that refusing to be bullied and standing together as a union pays off.

'We have decided to return to work on Monday. First we are going to have a celebration for all the union members and our supporters. We will then hold a karakia at the gates on Monday morning before heading back to work with our heads held high.”

Essity's General Manager at Kawerau Peter Hockley says reaching an agreement allows us to resume production which is in everyone's best interests.

'The Union has decided employees will return to work on Monday, September 19, so we're now preparing for production to resume at the mill.

'The focus for Essity now is on the long-term future of the Kawerau mill and rebuilding our relationships with the mill workers.”

Employment Relations Authority's Recommendation

2022

5%
$4,000 lump sum

2023

4.5%
$3,000 lump sum

2024

4%


The agreement will expire in July 2025.

Kawerau is the last remaining paper production and manufacturing plant in the country supplying nearly 50 per cent of the market – the rest is made from imported paper.

Economic pressure has seen one other major plant close over last year and another reduce jobs and pay rates to stay competitive. In the last 12-months, two other suppliers have left New Zealand because of cost pressures.

Essity has shown its commitment to the Kawerau mill by investing $130m in plant upgrades over recent years – the uncertainty of the strike action put on hold a further investment of $15m to upgrade its paper machines and significantly reduce the mill's carbon emissions.

'Reaching an agreement and getting the mill back in operation is in a good outcome for all,” says Peter.


1 comment

Calculation?

Posted on 14-09-2022 12:05 | By Kancho

Has anyone worked out how long it will take to recover from the loss of six weeks wages ? Is this a pyrrhic victory perhaps ? Maybe a few loo rolls needs to be part of the deal?


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