Workers First Union members at Independent Petroleum Laboratory (IPL), owned by Channel Infrastructure, have begun strike action today after the company refused to address union members’ exclusion from a lucrative bonus scheme.

Despite multiple attempts to resolve the issue through mediation, IPL continues to offer the bonus only to non-union employees, a decision that Workers First says is unlawful under the Employment Relations Act 2000.

"Our members are taking strike action today after being denied the same rights as their colleagues because they’ve chosen to bargain collectively," said Justin Wallace, Workers First organiser. "Denying union members a financial benefit that non-union members receive is a clear-cut case of discrimination."

The strike, which began today, will continue for six days from 12:01 AM - 11:59 PM on March 31 and April 2-6. As IPL plays a key role in fuel testing for airports and petrol stations, the strike could slow the certification and release of fuel, including jet fuel, potentially impacting supply chains. Channel Infrastructure, the owner of IPL, manages a critical 170-kilometre pipeline delivering diesel, petrol, and jet fuel to the Auckland and Northland markets, which constitutes 40% of New Zealand's fuel demand.

"The responsibility for any disruption lies squarely with IPL and Channel Infrastructure," said Mr. Wallace. "This issue could have been resolved if management had chosen to treat all employees fairly rather than punishing those who are unionised."

Channel Infrastructure recently reported a net profit of $26 million for the full year ending December 31, 2024. Despite a 6% drop in profits compared to the previous year, revenue increased by 7% to $139.8 million. The company has also invested $55 million in infrastructure projects and signed long-term contracts worth around $120 million.

"This is not a question of affordability - it’s about fairness," said Mr. Wallace. "Even non-union staff can see the injustice and support our members’ stand."

"IPL needs to stop discriminating and extend the bonus scheme to all eligible employees. We remain open to further discussions if they’re willing to address these concerns in good faith."

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