After several days of negotiations, the Employment Relations Authority has recommended pay increases for an agreement between Essity and the paper mill’s workers.

Essity has accepted the recommendations and has proposed an offer to the Pulp and Paper Workers’ Union in line with those recommendations.

Essity’s General Manager at Kawerau Peter Hockley says subject to the Union and employees accepting the offer, Essity plans to resume production at the Kawerau mill on Thursday 15 September.

“It’s now up to the Union and employees to decide whether to accept the Employment Relations Authority’s (ERA) recommendations or not.

“Reaching an agreement is in everyone’s best interests and allows work to return to normal at the mill.”

Essity has withdrawn all legal claims against the Union.
 

Under the ERA’s recommendations, the agreement will expire in July 2025.

Kawerau is the last remaining paper production and manufacturing plant in the country supplying nearly 50% of the market – the rest is made from imported paper.

“Essity’s sole focus has been on reaching an agreement that is fair but helps secure the long-term future of the Kawerau mill.

Economic pressure has seen one other major plant close over last year and another reduce jobs and pay rates to stay competitive. In the last 12-months, two other suppliers have left New Zealand because of cost pressures.

Essity has shown its commitment to the Kawerau mill by investing $130m in plant upgrades over recent years.

“Everyone loses when the mill remains idle. It’s now up to the Union and employees whether manufacturing at the mill can resume,” Mr Hockley says.

Essity won’t be making further comments at this time.

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