Essity reaches agreement with New Zealand workers
After a five-week lockout, employees have accepted a revised salary offer and will return to work
Last Wednesday, 14th, Essity agreed to end the lockout of 145 workers in Kawerau city, New Zealand, after they agreed to accept a salary offer. Employees will return to work next week.
After days of negotiation, the company decided to accept the recommendations from the Employment Relations Authority and revised the salary proposal, in addition to withdrawing all actions against the Pulp and Paper Union Kawerau, the local union of pulp and paper workers. The workers had been laid off for five weeks.
The revised agreement keeps workers’ income 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, according to the union.
The 145 workers were locked out by the company on August 9 after a disagreement over a pay deal that would meet a rising cost of living.
Union secretary Tane Phillips said workers were relieved that they had reached a fair deal and for the lockout to be over.
