The Australian Industrial Court has ordered unionized workers at Wilmar Sugar and Renewables, the country’s largest sugar maker, to suspend industrial action for six weeks, the company said.
The Fair Work Commission’s decision will ensure that Wilmar’s eight sugar mills – which together produce more than 2 million tonnes of sugar worth around $1 billion a year – avoid any further disruption to their operations.
A wage dispute led to strikes starting in May, which delayed and disrupted the start of seasonal sugarcane crushing operations and threatened to reduce Australia’s sugar production.
“The suspension of industrial action mitigates the immediate risk to the annual crushing season and leaves room for negotiations with unions,” a Wilmar spokesperson said in a statement.
The unions will appeal the decision, said Jim Wilson, a representative of the Australian Workers’ Union.
But he added that the Fair Work Commission was likely to extend its suspension order to prevent any further strike action and, if negotiations do not progress in the coming months, impose a pay deal on both parties.
Wilmar Sugar and Renewables accounts for more than half of Australia’s sugar production, most of which is exported. It belongs to the Singaporean company Wilmar International.
The company said heavy rains in hot, humid parts of the northeast coast over the past week had forced it to halt work at its factories, but it hoped to restart all of them. in service in the coming days.
