Australia’s largest sugar producer, Wilmar Sugar and Renewables, has temporarily halted operations at one of its sugar mills after unions agitating for better pay said workers would lay down tools.
The Inkerman Mill in the Burdekin region was the only one of Wilmar’s eight mills that had begun its cane crushing season, with the others due to start by the end of next week. However, the start of processing at all eight mills has been delayed by the ongoing pay dispute between the company and its workers.
Wilmar said it was forced to shut down the Inkerman Mill overnight after union delegates advised that workers planned to stop work at that site and at least two other sites for one hour at midday on Wednesday. The company later stated it aimed to resume crushing as soon as possible on Wednesday afternoon and would start two more Burdekin region mills, Invicta and Kalamia, on Thursday, despite the threat of continuing industrial action.
Mike McLeod, Wilmar’s operations manager, said the company had stopped the mill, a process that takes about 12 hours, for operational and safety reasons because it was unclear whether workers would stop work again on Wednesday. However, a union representative said this was not true.
Cane growers expressed disappointment and frustration at being “blindsided” when told late on Tuesday that the mill would shut without processing cane that was already being harvested. The local wing of the CANEGROWERS industry group accused Wilmar of “only using this as an opportunity to apply leverage against the unions.”
Wilmar Sugar and Renewables produces over 2 million metric tons of sugar a year, more than half of Australia’s total production. The unions are demanding an 18% pay increase over three years, while the company has offered 14.25% over 3.5 years and a A$1,500 ($1,000) sign-on bonus, which was rejected by workers.
The ongoing industrial action poses a significant threat to Australian sugar production and exports, as it could shorten the crushing season and leave cane unharvested.