Phillips claimed Essity had given the union member workers an ultimatum to accept an offer "or they'll keep us locked out".
"We're trying to get them into negotiations. We've asked for mediation, but they've not agreed. They're telling us to accept the deal or nothing - they won't even talk to us unless we accept the deal," he claimed.
He said the locked-out workers worked throughout the pandemic.
"During Covid they really had to produce a lot of toilet paper ... so there will be an impact on the supply in New Zealand.
"Now what they're asking for is just CPI [Consumer Price Index] - if they don't get CPI, they're going backwards."
Essity has been approached for comment.