Canegrowers claim Wilmar sugar mill strikes costing $4m per day

Queensland’s cane farmers are fed up over the fight between sugar mills and their workers, claiming they are far behind schedule and bleeding millions in lost revenue. See the union’s response.

Unionised employees from Wilmar Sugar and Renewables’ Victoria and Macknade mills in Herbert River on strike in Ingham. Picture: Cameron Bates

The peak body for Australian sugarcane growers alleges that the standoff between Wilmar and its employees is costing farming families $4m every day the workers strike.

“Sugarcane farming families have been losing $4m a day due to strike action at Wilmar mills, and we’ve seen the crush fall up to 20 per cent behind schedule in some districts,” Canegrowers chairman Owen Menkens said on Monday.

But Wilmar maintains it is committed to reaching a “fair, reasonable and sustainable” enterprise agreement.

Mr Menkens welcomed news that Australia’s largest raw sugar company and unions representing workers at eight Queensland sugar mills had accepted a mediation offer from the Fair Work Commission.

“It’s been clear for weeks that the parties had reached a stalemate in negotiations, so it’s well past time that we got this issue resolved.”

Mr Menkens also alleged that communication between the mills and grower suppliers had been almost non-existent, saying growers had been “left in the dark about what may happen from one day to the next”.

Wilmar Sugar and Renewables' Victoria Mill fires into life at the start of the 2024 sugarcane crush harvest on the outskirts of Ingham in the Herbert River region (Hinchinbrook) of North Queensland. Picture: Cameron Bates

“Cane harvesters, contractors, farmers and farm workers have been operating in an atmosphere of complete uncertainty, and they have had enough,” he said.

“There are no winners in this situation, but there are very clear losers, that’s the cane growing families whose livelihoods are being devastated.”

The Burdekin-based cane farmer said he knew growers who were losing “tens of thousands a day during stoppages”.

“These farmers have spent millions of dollars growing this crop and getting it ready to harvest.”

He said the canegrowers faced “huge bills for fertiliser, chemicals, staffing, machinery, maintenance, and all the other costs associated with farming”.

“So, they are not just losing their income, they are unable to continue servicing those huge debts that farmers must run up just to grow a crop.”

Mr Menkens also blasted “certain parts of the milling sector”, alleging it had been underperforming for years.

“Every year we are seeing cane left unharvested in the paddock,” he said.

“The inability of some mills to crush the crop in that June to November window is hurting growers, the industry, and the communities that rely on sugarcane for survival.“

He said the solution was for milling companies to invest in their factories and infrastructure.

“Simply keeping mills ticking over year after year is not enough, because each year they are getting a little bit worse.”

The gap between Wilmar’s offers and unionised worker’s demands has narrowed, but not closed. Picture: Cameron Bates

He said the companies also needed to upgrade and modernise their assets, as well as “train and maintain qualified staff”.

Wilmar said on Friday that a one-hour stoppage across its eight mills on Thursday “put growers at risk of losing an estimated $3.5m in revenue”.

“We are optimistic that, with the expert help of a Commissioner from the Fair Work Commission, we will finally be able to close the gap between the company’s offer and union claims,” he said.

“The last thing we or growers want to see is another unnecessary shutdown of sugar factories, and another $3.5m in growers’ revenue at risk.”

The Australian Manufacturing Workers’ Union rejected claims that a one-hour stoppage once a week was the primary cause of the delays in the crush harvest, and said the $4m figure “may be an over-estimate”.

“Wilmar Sugar is struggling to attract and retain skilled labour, leading to significant reliance on contractors and multiple vacancies within their mills,” a spokesman said.

“This shortage of skilled labour and poor planning by Wilmar Sugar are the main factors impacting the reliability of the mills, not the industrial action.”

He said the three unions representing about 2000 workers were “fully committed to resolving this dispute as quickly and amicably as possible”.

The AMWU said its members had seen a 5.5 per cent wage increase since 2020, with the sugar-industry award increasing by 18.35 per cent in the same period.

“This disparity needs to be addressed to maintain fair wages and working conditions.”

AWU Northern District Secretary Jim Wilson said the members within the sugar communities were “deeply committed to resolving the ongoing issues swiftly and amicably”.

“The entire community’s livelihood hinges on the success of the sugar industry,” Mr Wilson said.

“ Unfortunately, Wilmar’s current offer is unsustainable, resulting in a significant departure of skilled and experienced workers from the industry.

“This mass exodus threatens the future viability of the sugar industry in North Queensland.”

A Wilmar Sugar and Renewables spokesperson said it was optimistic “with the expert help of a Commissioner from the Fair Work Commission, we will finally be able to close the gap between the company’s offer and union claims”.

“It is unfortunate that third parties, such as growers and harvesting operators, are being hurt by union actions,” the spokesperson said.

“We are communicating regularly with grower representatives on the progress of negotiations, and keeping our growers informed about the impacts of industrial action.”

He said Wilmar mills had processed about 2.2m tonnes of cane, or about 14 per cent of the total 2024 crop.

Originally published as Canegrowers claim Wilmar sugar mill strikes costing $4m per day