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 said 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Essity has withdrawn all legal claims against the union.
| Employment Relations Authority’s Recommendations | |
| 2022 | 5% $4,000 lump sum |
| 2023 | 4.5% $3,000 lump sum |
| 2024 | 4% |
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 per cent 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.”
Essity won’t be making further comments at this time.
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