Headquarters based in Australia have been embroiled in two labor disputes in New Zealand, one of which could lead to a shortage of toilet paper.
Key points:
- Health and hygiene giant Essity and Australian packaging and recycling company Visy have been unable to agree on new deals with New Zealand workers.
- Some 145 workers at the plant in Kawerau have been laid off and laid off indefinitely by owners Essity
- Workers are on strike at two Visy-owned manufacturing plants for the first time in 25 years
Health and hygiene giant Essity and Australian packaging and recycling company Visy have been unable to agree terms of new deals with Kiwi workers.
Some 145 workers at the plant in Kawerau have been laid off and laid off indefinitely by the Essity owners.
The mill supplies most of New Zealand’s toilet paper, and Pulp and Paper Union Kawerau Secretary Tane Phillips said the standstill could see kiwifruit run out.
“We’re the only place that really does it from scratch in New Zealand,” said Phillips.
The factory is the largest employer in Kawerau, an inland town in the Bay of Plenty, and produces about 70 per cent of New Zealand’s toilet paper.
Supermarkets are monitoring the situation, with Woolworths-owned Countdown working with Essity to manage the supply.
A spokesman said “at this stage” they were not worried about running out, although some supermarkets have again placed limits on toilet paper purchases.
While strikes are not uncommon in New Zealand, lockouts are rare.
Phillips said he was seriously concerned about his workforce, without pay for three weeks after Essity’s action.
Workers are seeking pay increases to match inflation, and Essity has offered 3 percent raises for the next three years and a sign-on bonus.
“They’ve never gone down 3 percent,” Phillips said of the negotiations, “and if we accept, we’ll back down.”
“One of the most frustrating parts of this negotiation is that the big managers are in Australia. The local managers have nothing to say; it’s all been driven from Australia.”
General manager Peter Hockley said Essity’s offer was “more than fair and reasonable” and that the walkout came after unsuccessful talks and strikes.
Essity also postponed a NZ$15 million ($13.35 million) upgrade.
The dispute worsened this week when Essity took action to prevent workers from making withdrawals from their retirement accounts due to financial difficulties.
In Auckland, New Zealand workers are on strike at two manufacturing plants owned by Visy for the first time in 25 years.
The workers are seeking a one-time 10 percent raise and a simplified overtime arrangement, as their current agreement incentivizes long hours before overtime provisions take effect.
“We have children and we don’t see them, only in the mornings before they go to school or on weekends,” said union steward Reaaz Ali, who said he worked six days a week in 12-hour shifts.
“We feel like we don’t have a choice, and that’s also killing our health.”
E tū union leader Jen Natoli said the strikes came after Visy’s offer produced an average raise that would be a pay cut in real terms.
Visy did not respond to requests for comment.
AAP
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