A six-week lockout at the toilet paper factory in Kawerau has ended. Photo: 123RF
The Kawerau paper mill owner Essity is planning on rebuilding relationships with its workers when production resumes on Monday after a six week lock-out, while the union said it is satisfied with the deal.
An employment agreement was reached today between Essity and over 100 union members after several days of facilitated bargaining.
The union described the employer's actions as brutal - saying workers weren't being paid during the industrial action.
Its secretary, Tane Phillips, said they voted this morning to accept a revised pay offer and everyone will return to work on Monday after a karakia.
Phillips said a potential shortage of toilet paper and towels has been averted and the agreed deal keeps workers income higher than forecasted inflation for the next three years.
He said in the end, the union was happy to settle.
"It wasn't unanimous but it was heavily in favour.
"I think there was relief but there was also a sense of pride that the union members stuck together and they prevailed.
"Tomorrow we're going to have a barbecue and celebrate with our whānau and friends."
Essity's general manager at Kawerau said they are getting ready to resume production and focus on the mill's long-term future.
Peter Hockley said getting the mill operating again is a good outcome for all those involved.
Kawerau is the last remaining paper production and manufacturing plant in the country - supplying nearly half of the market - the rest is made from imported paper.
The offer from Essity matched a recommendation 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.
Phillips said he felt it was "a fairly reasonable deal and so did our members."
The first offers were too low, he said.
"We said to them very early on they needed to get on what's the reality of what's happening in the real world. That took a while."
Phillips said the relationship with the company is "a bit raw," and there will be some difficulties to overcome.
"I've been involved in lockouts before it takes a while for that relationship to heal, it takes a long time.
"Time heals most things, but it will just take time."
Economic pressure has seen one other major plant close over last year and another reduce jobs and pay rates to stay competitive.
In the last 12 months, two other suppliers have left New Zealand because of cost pressures.
But Phillips said he hoped the Essity plant would continue to stay a part of the community.
"There's money in loo paper."