Workers at the Kimberly-Clark Australia Millicent Mill appear to have done a backflip and are now unlikely to accept a formal company offer of an 8% pay rise over three years.
The increase was agreed in principle between mill management and union leaders in March but rank-and-file workers have had a change-of-heart due to the “current economic climate”.
The Reserve Bank has lifted interest rates by 1.75% in recent months while the annual inflation rate is currently 5.1% in line with the upward movement in the Consumer Price Index.
The Pulp and Papermakers Division of the Construction, Forestry, Manufacturing, Mining and Energy Union represents the interests of about 270 white collar and blue-collar members.
It updated its members on the enterprise agreement negotiations via a memo on Monday.
“The CFMMEU has been aware for some weeks that members have been providing feedback to the Millicent sub-committee the proposed wages offer of 3.5%, 2.5% and 2% over three years no longer meets their expectations in the current economic climate,” stated the union memo from its federal leadership.
“On the basis of this consistent feedback, the Millicent sub-committee have informed me they are not prepared to support the enterprise agreement if it goes out to vote with this wage offer.
“Your union has informed KCA management that despite having reached an earlier in-principle agreement on the matter in March, the changed circumstances we are in means we will not be supporting the enterprise agreement with the current wages offer.
“Although KCA management were disappointed to receive this advice from your union, both parties have committed to continuing to work through changes to the enterprise agreement to finalise as many things as possible.
“At this stage, the union does not know if KCA will put the enterprise agreement out to vote without our support.
“This is a possibility as they have previously advised that this was their final wages offer.
“If the enterprise agreement goes out to a vote, your union strongly urges all members to consider the content of the enterprise agreement carefully and utilise your vote.
“If the offer meets your expectations and the majority vote ‘YES’, the negotiations will finish and the enterprise agreement will be certified.
“If the offer does not meet your expectations and the majority vote ‘NO’, the parties will resume discussions to try and reach a mutually acceptable outcome.
“We continue to try and work to resolve negotiations in a way that will meet our members’ expectations.”
The other 130 workers on-site at Millicent are either members of two other trade unions, contractors or KCA staff.
The current enterprise agreement expired at the end of 2020.
The SE Voice has approached the company and the CFMMEU for comment.
