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Lockout To End As Kawerau Workers Win Cost Of Living Increase

The nearly six week lockout at Purex manufacturer Essity’s Kawerau mill will come to an end on Monday, after members of the Pulp and Paper Workers Union voted this morning to accept a revised offer from the company.

The 145 workers were locked out on August 9 after the company refused to offer a pay deal which would meet the rising cost of living.

The company’s revised offer matches a recommendation from the Employment Relations Authority that followed several days of facilitated bargaining.

The deal keeps workers’ incomes ahead of forecast inflation for the next three years, with a 5% increase and a $4,000 lump sum in 2022, a 4.5% increase and a $3,000 lump sum in 2023 and a 4% increase in 2024.

Union secretary Tane Phillips says workers are relieved to have secured a fair deal and for the lockout to be over.

“This has been the most brutal behaviour from a company I have seen in years. They just threw everything at our members.

“Essity locked out our members for nearly six weeks without pay to try to starve them out. The company blocked them from accessing their own retirement savings. And when that wasn’t enough they targeted individual workers with more than half a million dollars in legal threats.

“But while the company’s behaviour has been ugly, our members refused to be intimidated and have stood strong right through.

“We have been overwhelmed by the support and donations from the Kawerau community and people all across New Zealand. This is a lesson for big overseas corporates who think they can bully Kiwi workers that the community won’t tolerate it.

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“I also want to thank the Council of Trade Unions for its support through this dispute, as well as the Swedish unions and the global union body IndustriALL for putting pressure on Essity’s head office in Stockholm.

“This is a big improvement on the company’s original offer, which would have seen our members’ pay go backwards in real terms. We have achieved what we set out to, which was for our members’ pay to keep up with inflation. It shows that refusing to be bullied and standing together as a union pays off.

“We have decided to return to work on Monday. First we are going to have a celebration for all the union members and our supporters. We will then hold a karakia at the gates on Monday morning before heading back to work with our heads held high.”

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