Purex Manufacturer Issues $500,000 Legal Threat Against Locked-out Workers

Purex manufacturer Essity has launched legal action against its own employees, threatening them with more than half a million dollars in damages.

The legal threat comes three weeks into a brutal company-imposed lockout at Essity’s Kawerau mill, which has prevented 145 members of the Pulp and Paper Workers Union from going to work or getting paid.

The lockout was imposed by the company after wage negotiations broke down over the union’s claim for a pay rise equal to the rate of inflation.

Essity’s legal action relates to technicalities over a strike notice issued in July, before the company imposed the lockout. Strike action in pursuit of a collective agreement is legal in New Zealand and the union believes the company’s action is without merit.

Essity is seeking to make 67 individual employees “jointly and severally liable” with the union for $542,852 of damages plus costs.

Union secretary Tane Phillips says the threat has had a devastating impact on members and their whanau.

“This is an absolute punch in the guts for a group of workers who have already been locked out of their jobs without pay. I’ve had members call me saying they feel sick to their stomach, they feel like the company is going after their families.

“This is part of a pattern of vindictive behaviour from the Australian management who are trying to break the union and scare our members into giving up.

“We are not going to be intimidated by expensive lawyers or bully-boy threats. All we are asking for is for our pay to keep up with inflation. Essity is a large and very profitable company that can easily afford it.

“The company needs to stop the bullying tactics and end the lockout now.”

Union member Bill George says the legal threats are “a real a kick in the teeth”.

“I’m the only breadwinner and I have a wife as well as two grandkids with disabilities to provide for. We’re already hurting from the lockout, and now the company wants to sue us for thousands. I just ask where their humanity is.

“All the workers here did the hard yards during Covid to make sure hospitals and supermarkets were supplied, but there’s just been no loyalty in return. To be honest I feel betrayed by the company’s behaviour.”

Essity is a Swedish-based multinational that made $1.8 billion of profit globally last year. Its brands in New Zealand include Purex, Sorbent, Libra and Handee.

On Friday it was revealed that Essity had instructed the company’s superannuation scheme provider, SuperLife, to block workers from making financial hardship withdrawals from their savings.

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