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IP Network Delivers at Kinleith

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12 August, 2005ICEM News release No. 13/2003

T he resolve of a unified group of paperworkers belonging to New Zealand's Engineering Printing & Manufacturing Union (EPMU) backed by initiatives from the leader of ICEM's newly-founded Intenational Paper (IP) Network brought victory and a new labour agreement to 270 members of ICEM-affiliated EPMU at a key paper mill on the country's North Island.

Union members ratified the agreement and returned to work at the Kinleith Mill of Carter Holt Harvey (51% owned by IP) 3 June following a record 82-day strike.

The strike was bitter, and brought threats from corporate managers that the market pulp and linerboard mill that saw recent NZ$220 million capitalization improvements would be shuttered if the union didn't buckle under to management's work-rule demands.

But buoyed by family-style cohesiveness among strikers in Tokoroa, NZ, and persistent protests voiced by the chairman of the IP Network--ICEM Vice President Don Langham of the Paper, Allied-Industrial, Chemical, Energy (PACE) Union--to top executives of the U.S. multinational, the two sides hammered out a compromise agreement 28 May after three weeeks of non-stop negotiations. "I would hope that my involvement on behalf of the ICEM and the IP Network helped bring about a satisfactory collective bargaining agreement for our brothers and sisters in New Zealand," said Langham, a former IP worker himself who heads the southeastern states region of PACE.

"The solidarity and unity of the strikers and their families is a real lesson to us all," added Langham. "Their networking and food supply system coupled with the international solidarity that we instilled is an example of what can be down through Global Union Networks." But his own direct contact with IP executives, some of whom shuttled between the U.S. and New Zealand, surely played a role. At Carter Holt's annual meeting 30 April, retiring Chairman Sir Wilson Whineray said enough was enough, "Take my advice, get back together. Give a bit each way and settle it."

The dispute was costing the company nearly NZ$50 million at that point, and it was quickly losing its valuable Asian pulp market to South Ameican producers. The strikers, meanwhile, remained firm, perfecting the fine details of a Union Hall Welfare Center in which NZ$75 weekly vouchers were distributed to each striking family. The food fund was largely supported by unions affiliated with NZ's Council of Trade Unions and Australian ICEM affiliates CFMEU and AMWU. Aid and letters of support also poured in from unions in Canada, U.S., Sweden, Lithuania, Colombia and the United Kingdom, all alerted to the dispute through the IP Network.

The EPMU's Kinleith Senior Delegate Whisky Hastie said upon conclusion of the strike, "Surprisingly enough, we found the biggest thing you need in this world is food and we ate very well. Thanks to all New Zealanders and to the union members in Australia, we managed to support our families. Even when you cannot pay the bills, as long as your kids are fed, other things can wait." EPMU leaders did negotiate a three-month reprieve with banks over mortgage repayments.

"This is a wonderful example of how ICEM networks can deliver to affiliates when their members are in labour disputes," said ICEM General Secretary Fred Higgs. "We salute the EPMU members who took such a courageous stand to protect their livelihoods, and we salute the leaders of the IP Network for their solid work on their behalf."

Kinleith Mill workers had been without a current labour agreement since April 2001. The new two-year collective agreement retains an on-site, EPMU-manned fire brigade, a key health and safety demand which managers sought to remove. It also establishes a joint worker-delegate-management team charged with overseeing the promotions process. Carter Holt sought complete control over promotions based on its own skills assessments. EPMU members receive a first-year wage increase of 4% and one in the second year of 3%. A NZ$1,000 cash payout also was awarded workers affected by work schedules as the mill switches to four-days-on, four-off, 12-hour shifts.

Added EPMU National Secretary Andrew Little, "Everyone affected by the Kinleith strike, from workers to customers and suppliers, to the people of South Waikato will be glad this dispute has ended."