Labor strikes could lead to toilet paper shortages in New Zealand
Companies were unable to reach a consensus with their employees on new labor agreements
Two big companies are facing disputes that warn of a possible shortage of toilet paper in New Zealand. Health and hygiene giant Essity and Australian packaging and recycling company Visy were unable to reach a consensus with their employees on new labor agreements.
The Pulp and Paper Union Kawerau is demanding a pay rise to offset inflation. Essity, in turn, offered a 3% readjustment, divided into three years. After demonstrations and almost a month without payment of wages, the tissue manufacturer prevented employees from entering the factories.
Local media reports revealed that around 145 workers at the location in Kawerau were blocked and stood down indefinitely by Essity, following fruitless negotiations and demonstrations. While strikes are not uncommon in New Zealand, lockouts are rare.
The dispute worsened last week, when Essity decided to prevent workers from withdrawing from their retirement accounts, due to financial difficulties.
The dispute worsened last week when Essity moved to block workers from making financial hardship withdrawals from their superannuation accounts. The conflict would have even led the company to postpone an update of US$ 13.35 million.
The facility is the main employer in Kawerau – a town in the Bay of Plenty countryside – and produces around 70% of New Zealand’s toilet paper. Despite this, the parent company, based in Australia, is the one who makes the decisions on salaries, according to information from the newspaper O Povo. Therefore, negotiations are difficult, with the union taking the demands to local representatives, who pass them on to the leadership in the other country, instead of returning directly.
Local supermarket chains say there is no concern about shortages for the time being. Despite this, some retailers have already secured toilet paper purchases to keep additional stock in the coming weeks, in case the situation is not resolved.
According to Scoop Independent News, union members E tū, who work at Visy Board New Zealand in Wiri and Charta Packaging – both owned by the Visy company – are demanding a raise of at least 10% to their regular salary in a Transition Signing. According to the paper, they also want overtime pay to start at 40 hours instead of 50 hours, as most work regular overtime of up to 70 hours a week.
The protest, which includes more than 100 workers, is the first held within Visy in 25 years.
