Kawerau Lockout: Toilet Paper Giant Blocks Workers From Accessing Own Savings – Pulp and Paper Workers Union

Purex manufacturer Essity is being accused of ‘starvation tactics’ after it was caught blocking locked out workers from accessing their own savings.

Essity locked out 145 Kawerau workers three weeks ago after they refused to accept a pay deal that would see their wages go backwards after inflation. The lockout means workers cannot return to their jobs and they receive no pay.

Now, as hardship starts to bite, the union has obtained a letter showing Essity bosses have instructed the company’s superannuation provider to block workers from making financial hardship withdrawals from their own savings.

The letter from SuperLife to an Essity employee states:

“We have received your application form to apply for a financial hardship withdrawal from your Asaleo Care Super. We have been informed by your HR this week, that all financial hardship requests must be approved by the company, and they will not be consenting to any withdrawals during this time. Therefor, we are unable to proceed with your application.”

Pulp and Paper Workers Union Kawerau secretary Tane Phillips says Essity’s move is cruel and vindictive.

“This is starvation tactics. The company could end the lockout any day, but instead they are trying to inflict as much suffering as they can on our members and their families in the hope they give up.

“Our members put money into this super scheme with the promise that if they ever faced hardship they’d be able to access it. It is nothing short of cruel and vindictive to cut off both their pay and their savings.

“This lockout is being driven by Essity executives in Australia, who don’t care about us and probably don’t even know where Kawerau is on a map. I’d like them to come here and look these workers and their families in the eye.

“All we are asking for is a pay increase to match the rising cost of living. Essity is a company that made nearly two billion dollars in profit last year so they can easily afford it.

“Essity should end this lockout today and let our members get back to work.”

Essity’s brands include Purex, Sorbent, Libra and Handee.