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Home / Business

Kawerau: Essity toilet paper mill workers speak out about impact of lockout as company maintains offer is fair

Emma Houpt
By Emma Houpt
Multimedia journalist·Rotorua Daily Post·
26 Aug, 2022 06:00 PM6 mins to read

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Bay of Plenty mill worker Suzy Kotuhi. Photo / Mead Norton

Bay of Plenty mill worker Suzy Kotuhi. Photo / Mead Norton

Locked out by her employer, Bay of Plenty mill worker Suzy Kotuhi is stressed and constantly checking her bank account.

She is in her third week without pay, scraping by on savings - and she does not know how long the stalemate between the company and union will continue. But she is not willing to back down.

Kotuhi and 144 of her colleagues have been locked out of their workplace, the Essity paper mill in Kawerau, since August 9.

Workers say they are stressed, losing sleep and wondering when they will next get paid, with one saying in his opinion the company is trying to "starve us out until we go back".

But those who spoke to NZME say they have no choice but to fight back, and push for a pay increase to match the rising cost of living.

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An Essity spokesman, however, claims it was the company left without any option but to lock workers out, to try and secure an agreement after days of strikes.

The Essity mill in Kawerau is a local manufacturer of toilet paper. Photo / Mead Norton
The Essity mill in Kawerau is a local manufacturer of toilet paper. Photo / Mead Norton

Kotuhi said her "only saving grace" was she had known to put money aside for this time.

"Even as prepared as I am, my budget is tight. I am taking everything to the limit. But it is what it is, I just have to do what it takes."

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Kotuhi, a union delegate, has been working at the mill for 18 years. She also has four daughters aged 17 to 25.

She said she was constantly checking her bank account assessing "how many weeks I have got until the s*** hits the fan".

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'Unprecedented': 145 mill workers locked out without pay for two weeks

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"It is stressful, the vouchers help take the stress off but I am thinking about it all the time."

Kotuhi said all 145 staff had "come together under hardship" and were meeting regularly to address issues.

"It's a great opportunity for everyone to come together and not feel alone. The more we can talk about it, the stronger we are actually getting," she said.

She said, in her view, the company had given workers an ultimatum and there was "no choice" but to push back.

"Either we give in to their demands, or we put up a fight. It would be an injustice to everyone before my time to just give in. To not fight for what is a basic rise in living."

Essity is one of the world's largest hygiene and health companies and its brands include Purex, Sorbent, Libra and Handee.

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Pulp and Paper Union Kawerau union secretary Tane Phillips has previously warned the lockout could put the country's toilet supply at risk.

He has said three contracts are being negotiated on behalf of the employees, who called for an inflation adjustment as part of their collective employment agreements.

The consumer price index (CPI) June quarter increase was up 7.3 per cent on the year before.

Phillips noted the company had offered a one-off payment in the first year, but said pay rises in the other two years did not match expected inflation, based on analytics predicting an overall rise of 15 per cent over the contract period.

Essity has said its offer equated to 14.7 per cent over three years, saying in a previous statement this was comprised of a three per cent increase each year.

There was also a one-off cash payment in the first year, making that year's payment equivalent to 8.3 per cent.

Peter Hockley, the general manager at Essity's Kawerau site, said in a statement the company had no option but to initiate a lockout to try and secure an agreement, after 19 days of strike action, and continued wage claims that threatened the future of the site and jobs.

He believed the company had "well-remunerated" employees, who were among the "highest paid working in manufacturing in New Zealand, earning nearly double the median weekly earnings of New Zealanders".

Union delegate Simon Goddard. Photo / Mead Norton
Union delegate Simon Goddard. Photo / Mead Norton

Simon Goddard has worked at the mill for 22 years. He said he was losing sleep over how the impasse would be resolved.

"I have no idea how we are going to get through it. I just cannot see an avenue. It's just constantly on my mind, I haven't been sleeping through the night," Goddard, the senior site union delegate, said.

From his perspective, the timing of the lockout was particularly upsetting given many of the staff worked overtime throughout the pandemic while numbers were low, he said.

"It feels s*** to be honest. It really hurt a lot of the guys - what they did for the company over the last two years. We came to work, we did our best and we kept the factory going."

Goddard said if it wasn't for support from the union and wider community, some workers would be struggling to feed themselves and their families right now.

The union was providing members with grocery vouchers and they had received advice from budgeting services.

Staff at neighbouring mill Oji Fibre Solutions chipped in money for petrol vouchers and the local foodbank was putting together food parcels for those most in need, he said.

"We are lucky we are from small towns and we are community oriented. It's that community spirit. It's fantastic," he said.

"We are just making sure none of our families starve."

Four of the 145 workers had also qualified for financial support from Work and Income.

He did not believe the workers' demands were "over the top" as they just wanted a pay adjustment to match the rising cost of living.

"The reality for our people is we don't want cash, we want a percentage pay rise."

Goddard was thankful his wife was earning money as he went without pay but said not all of his colleagues were so lucky.

He spoke of one staff member who was the sole earner supporting his extended family, and other young workers struggling with mortgage payments and living costs.

Union delegates Simon Goddard, Suzy Kotuhi and Rik Tauroa. Photo / Mead Norton
Union delegates Simon Goddard, Suzy Kotuhi and Rik Tauroa. Photo / Mead Norton

Union delegate Rik Tauroa said, in his view, the company was "trying to starve us out until we go back".

The 55-year-old had been working at the mill for 19 years and said he and his partner were "cutting right back" to save money.

He had been fielding text messages from upset and angry staff who wanted updates on negotiations.

"It's always on your mind. How long is this going to last? My wife is working, but we are eating everything out of the freezer now. We aren't getting takeaways or going into town when you don't have to," he said.

"I am getting texts constantly about what's happening. These are the guys that are hurting."

Essity said it had no further comment in relation to the comments from workers but reiterated it had made a "fair and reasonable wage offer".

A spokesman for Workplace Relations and Safety Minister Michael Woods said the minister was aware of the ongoing situation but would not comment further.

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