Maryvale workers vote for pay cut

Production workers at the Maryvale paper mill run by Australian Paper have agreed to take a five per cent pay cut to secure the factory’s long term future, in what was a close vote.

Some 199 workers voted for the pay cuts, 187 against, while 116 abstained from voting, according to Anthony Pavey, CFMEU representative and worker at Australian Paper’s Maryvale mill. Pavey says the cut should occur in the next four to six weeks, pending the approval of the Fair Work Commission.

Pavey says the decision was made to ensure workers did not lose their jobs. He says, “They wanted to change us to a four-shift roster, potentially losing up to 90 jobs, which we argued with. There will be no job losses with the pay cut.”

Speaking to the worker’s morale following the pay cut decision, Pavey says, “Everyone is a little bit flat. Everyone seems to be accepting it and moving on, so to speak. No-one is really going to be happy about a pay cut.”

Last year maintenance workers at the mill agreed to a 38-hour, four-day week while being paid for 35 hours, in return for 52 days off a year.

The CFMEU says it has been working towards a new enterprise agreement with Australian Paper for the past two years. Alex Millar, pulp and paper workers district secretary, CFMEU says, “Negotiating a wage-cut was not our first choice, but after two years we put it to the members. We did not campaign for or against.

“We wanted assurances that there was a long-term plan in place to secure the jobs at the mill. They convinced us they were in it for the long term, so long as profit was there to be made. The company initiated the vote, not the union, and it was conducted by the Australian Electoral Commission.”

Pavey says that cost-cutting measures have been company-wide, “The company has a turnaround plan that has addressed $50m worth of savings. Some workers are doing 38 hour weeks for 35 hours of pay. Australian paper has streamlined management, looked for savings in chemical supplies, consumables, procurement, everything along the process line.”

Millar points to energy-saving investments as a way for the company to save money without laying off staff. He says, “There are no plans to automate any aspects of production to minimise wage costs. It is around energy costs and energy efficiencies.”

“Nippon committed that should the mill close, they would honour the workers statutory entitlements. The mill will be open for at least the next four years, although ideally it would open for another 20 years.

“This shows us they were serious about keeping jobs. No-one likes a wage-cut, now we have to work with our members. The union has to hold the company accountable for long term investment in the mill. The company needs to grow in new markets for the business to survive.”

As for the long-term future of the paper manufacturing industry in Australia, Millar says that the CFMEU believes, “With the right policy support from Government encouraging investment we believe there is a long term future. We have the resources for a strong competitive industry. We have an advantage in terms of environmental standards and industrial standards to compete globally.

“It is under threat currently, and no government has put their hands up and said we want to make this a strong industry.”

Pavey agrees, saying “We are in an industry that relies heavily on continual investment.”

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