After 145 factory workers were locked out for more than a fortnight by Kawerau’s Essity paper mill after taking limited strike action, union members have voted to accept an increased pay offer and will resume work on Monday.

Having rejected a pay increase of three percent over three years and a lump sum payment of $4,500, the Employment Relations Authority recommendation of a 5% pay increase this year and a $4000 lump sum; a 4.5% increase in 2023 and a $3000 lump sum; and a 4% increase in 2024 has now been accepted. Essity has also withdrawn all legal claims against the Union.

Kawerau is the last remaining paper production and manufacturing plant in the country, supplying nearly 50% of the market – the rest is made from imported paper.

“Essity’s sole focus has been on reaching an agreement that is fair but helps secure the long-term future of the Kawerau mill,” says General Manager, Peter Hockley.

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.

“Essity has shown its commitment to the Kawerau mill by investing $130m in plant upgrades over recent years. Everyone loses when the mill remains idle,” Mr Hockley adds.

Essity is a multinational Swedish-based company with 46,000 workers. It is the world’s second-biggest manufacturer of toilet paper and tissues and also produces sanitary products, facemasks and bandages, among other products. The Kawerau plant makes well-known brands such as Purex and Sorbent toilet paper and Handee paper towels.