Wage increases at New Zealand's largest toilet paper manufacturer could lead to loss of investment and threaten local jobs, the company says.
Workers at Essity's Kawerau mill, which makes Purex toilet paper and Handee paper towels, have been locked out since August 9 due to a pay disagreement.
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, says general manager of the Kawerau mill Peter Hockley.
'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.”
Pulp and Paper Union Kawerau secretary Tane Phillips says toilet paper supplies could dwindle because 145 workers have been locked out indefinitely without pay.
Phillips says the union wants a pay increases in line with inflation and the rising cost of living, and while there is the additional one-off payment offered in the first year of the three-year contract, the pay rises following do not match expected inflation.
'After 19 days of strike action and continued wage claims that threaten the future of the site and jobs, we had no option but to initiate a lockout to try and secure an agreement,” says Hockley.
'Acceptance of the union's demands has real potential to cost local jobs.”
Essity says, in response to increasing cost pressures and instability caused by the union's wage demands and industrial action, it has indefinitely suspended a major paper machine upgrade project that will contribute to the viability and future of the site.
The $15 million project would upgrade Essity's paper machine drying process to geothermal steam, delivering world-first innovation, Hockley says.
Essity is a major employer in the Bay of Plenty area, employing more than 200 people at Kawerau, and was the only local manufacturer to make tissue paper and convert it to finished products in New Zealand.
3 comments
Johnbuoy
Posted on 26-08-2022 16:17 | By John sefton
If I'm not mistaken the lost money and or wages from lockout has now gone,it will take a bigger wage increase to even get close to status quo,been there done that,be great full,
Be Careful Union
Posted on 27-08-2022 06:42 | By Thats Nice
In this current climate you can't get too greedy otherwise the result may be that people will lose their jobs. I agree you need to be paid for inflation but just tread carefully at the moment. The article says the workers "are amongst the highest-paid working in manufacturing in New Zealand" but it would be interesting to know exactly how much that is.
The article claims...
Posted on 27-08-2022 12:37 | By morepork
... these are among the best remunerated manufacturing personnel in NZ. In the time they are not working, they have wasted more than the increase that was offered. Times are tough and getting tougher. This may not be the time for industrial action on either side. Be thankful you have a well paid job, with a promise of further increases.
Leave a Comment
You must be logged in to make a comment.