Kawerau Essity: Lockout to end as workers win cost of living increase

The Essity paper mill in Kawerau. Photo / Mead Norton

The nearly six-week lockout at Purex manufacturer Essity's Kawerau mill will come to an end on Monday.

Members of the Pulp and Paper Workers Union voted this morning to accept a revised offer from the company.

The 145 workers were locked out on August 9 after a disagreement over a pay deal that would meet the rising cost of living.

The company's revised offer matched a recommendation from the Employment Relations Authority that followed several days of facilitated bargaining, the Pulp and Paper Workers Union said in a media release this morning.

The deal keeps workers' incomes ahead of forecast inflation for the next three years, with a 5 per cent increase and a $4000 lump sum in 2022, a 4.5 per cent increase and a $3000 lump sum in 2023 and a 4 per cent increase in 2024.

Union secretary Tane Phillips said workers were relieved to have secured a fair deal and for the lockout to be over.

Members had "stood strong right through".

He said they had been overwhelmed by the support and donations from the Kawerau community and people all across New Zealand.

"I also want to thank the Council of Trade Unions for its support through this dispute, as well as the Swedish unions and the global union body IndustriALL for putting pressure on Essity's head office in Stockholm.

"This is a big improvement on the company's original offer, which would have seen our members' pay go backwards in real terms. We have achieved what we set out to, which was for our members' pay to keep up with inflation."

Workers were expected to return to work on Monday but not before they had a celebration for all the union members and supporters.

'We will then hold a karakia at the gates on Monday morning before heading back to work with our heads held high."

A New Zealand Council of Trade Unions media statement said it was pleased to see the end of the lockout and it was "a victory for working people".

"Today is a good day for working New Zealanders, and an example of what we can achieve when we stand together in union," NZCTU president Richard Wagstaff said in the statement.