Australia’s largest sugar producer halted operations Wednesday at a factory that began processing sugarcane two days ago, after unions agitating for better wages said workers were going to drop off their tools, the company said.
The mill in the north-east Burdekin region is the only one of eight mills run in Australia by Wilmar Sugar and Renewables to have started its cane crushing season, with the others expected to begin operating in the coming weeks.
The start of processing at the eight mills has been delayed by the wage dispute, which poses a growing threat to Australian sugar production and exports as it could shorten the crushing season and result in sugarcane not being harvested .
Workers rejected a wage offer in a vote that ended Tuesday and are carrying out short-term work stoppages and bans, the company said.
“The only operating sugar mill in the Burdekin, Inkerman Mill, was forced to close overnight after union representatives informed workers that they planned to stop work at that site, and at least two other sites , for one hour at noon today,” Wilmar said in a statement.
Operations manager Mike McLeod said the company decided to shut down the plant for operational and safety reasons because it was unclear whether workers would stop work again on Wednesday.
A safe shutdown typically takes around 12 hours and must be carried out carefully and precisely,” he said.
“We now need to determine whether we can proceed with the planned start-up of the Invicta and Kalamia plants later this week,” Mr McLeod added.
The sugarcane crushing season on Australia’s hot and humid northeast coast begins in June and ends around November.
Wilmar Sugar and Renewables produces more than 2 million tonnes of sugar per year, worth around $1 billion, representing more than half of Australia’s total production. The company is owned by the Singaporean company Wilmar International.
The company offered workers a 14.25% pay rise over three and a half years, as well as a signing bonus of 1,500 Australian dollars ($1,000). The unions are demanding an increase of 18% over three years.
($1 = 1.5135 Australian dollars) (Reporting by Peter Hobson; Editing by Sonali Paul)
