The paper mill in Kawerau. File photo. Photo: Flickr/Kimberley Howell
After more than a month of being locked out of a Kawerau mill, Pulp and Paper Union members will today consider a pay offer which may see them return to work tomorrow.
The employer, Essity, has accepted recommendations from the Employment Relations Authority for a 5 percent increase this year for workers plus a $4000 lump sum.
This will be followed by a 4.5 percent rise and $3000 next year before another 4 percent rise in 2024.
Since 9 August, 145 workers at the mill have been locked out without pay with some describing their financial situation as desperate.
The union had rejected an offer of three percent increases for three years.
Essity general manager Peter Hockley said subject to the union and employees accepting the deal, Essity planned to resume production at the Kawerau mill on Thursday 15 September.
"It's now up to the union and employees to decide whether to accept the Employment Relations Authority's (ERA) recommendations or not."
The union had been in pursuit of a 7 percent pay increase to match inflation.
Union secretary Tane Phillips said members would discuss the deal today and a vote would follow.
Essity has withdrawn all legal claims against the union. It had earlier threatened to sue 67 staff for more than half a million dollars in damages.
Essity is one of the world's largest hygiene and health companies and its brands include Purex, Sorbent, Libra and Handee.
Kawerau is the last remaining paper production and manufacturing plant in the country supplying nearly 50 percent of the market.
