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Paper Mill Dispute Again Surfaces in New Zealand

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10 September, 2005

Just two years past a bitter 84-day strike, New Zealand paperworkers of ICEM affiliate Engineering Printing and Manufacturing Union (EPMU) and Carter Holt Harvey (CHH) are again locked in a bargaining dispute at the Kinleith mill. CHH, majority owned by US-based International Paper Co., has refused to meet EPMU’s pay demands for over 500 workers at the market pulp and containerboard mill. The union has campaigned since February in all NZ bargaining renewals for “5% in ‘05” but Australia and New Zealand’s biggest paper company has offered only 4% this year and 3% in 2006. EPMU members at Kinleith have threatened industrial action if the dispute over pay and a pay parity issue with workers at another CHH pulp mill is not resolved. At a plywood mill next door to the Kinleith mill near Tokoroa, North Island, EPMU is in consultation with CHH to save and cushion job losses. The company announced it would cut 55 of 250 woodsector jobs at this mill effective 23 August. The US parent of CHH, meanwhile, has also announced that the entirety of the firm’s assets in New Zealand and Australia are now for sale.