Essity has been unable to agree to terms for new deals with New Zealand workers and now around 145 mill workers in Kawerau have been locked out and stood down indefinitely. Essity is also threatening 67 staff with more than half a million dollars in damages. Source: Timberbiz
Essity’s legal threats are over a strike notice issued in July to push for a pay increase to match the rising cost of living. The Pulp and Paper Workers’ Union says that Essity is seeking to make 67 individual employees “jointly and severally liable” with the union for NZ$542,852 of damages plus costs.
Workers have been without pay for around three weeks after seeking wage increases to match inflation, Essity has offered 3% over the next three years which according to the union does not keep up with inflation.
Tane Phillips secretary of New Zealand’s Pulp and Paper Union has said that the company’s managers in Australia are negotiating the deal without local management involvement.
New Zealand’s FIRST Union Wood and Forestry Council passed a resolution in support of Essity’s workers.
Essity’s mill makes around 70% of New Zealand’s toilet paper producing it from scratch. The company is one of the world’s largest hygiene and health companies with brands such as Purex, Sorbent, Libra and Handee.
Essity has just finalized acquisitions of Canadian company Knix Wear and Australian company Modibodi. With these acquisitions, Essity will become the global market leader within leakproof apparel, the fastest growing product segment in Intimate Hygiene which includes Feminine Care and Incontinence Products.
Modibodi provides leakproof apparel for periods and incontinence. The company has a strong presence in Australia, New Zealand and the UK and operates an online, direct-to-consumer business model, with growing sales in retail and through e-tailers.
Visy workers in New Zealand are also striking at two manufacturing plants.
E tū members from Visy Board New Zealand in Wiri and Charta Packaging both owned by the Visy are wanting to see at least a 10% increase on their regular pay in a one-year deal.
They also want to see overtime pay start from 40 hours rather than 50 hours, as most do regular overtime up to 70 hours a week.
It’s the first time in 25 years that Visy workers have taken strike action.