Opal lockout designed to crush its workers, warns ACTU

One of the nation’s largest paper and packaging companies has locked out more than 300 workers without pay.

ACTU secretary Sally McManus has accused Opal of trying to ‘crush’ its workers. Picture: NewsWire / John Gass

ACTU secretary Sally McManus has accused one of the nation’s largest paper and packaging companies of trying to “crush” its workforce after more than 300 workers were locked out indefinitely without pay at the Maryvale paper mill in Victoria’s Latrobe Valley.

Opal, the local subsidiary of Japanese paper giant Nippon, is seeking a raft of changes to an enterprise agreement covering production employees at the financially struggling mill, which has been significantly impacted by a loss of wood supply and a subsequent end to white paper manufacturing.

Following legal industrial action by seven workers for six hours last week, Opal locked out the ­entire 308-strong production workforce, claiming it could not operate its paper production ­facilities given the action and further threatened rolling stoppages.

Ms McManus slammed the “unfair and unreasonable” lockout and Opal’s “corporate greed”, urging the company to end the disproportionate action and negotiate a fair deal with the workers. “When a multinational attempts to crush a workforce and a community, the union movement of Australia will respond,” she said.

“We know these workers made personal sacrifices to keep the paper mill moving during difficult times, and now they are being punished by the company for simply wanting their wages and conditions to be protected.”

Denise Campbell Burns, the Construction Forestry and Maritime Employees Union manufacturing division’s pulp and paper district secretary, said workers were strongly opposed to the company’s desired changes to the agreement, including a proposal to extend weekly ordinary hours from 35 to 38, and were “prepared to be locked out for a considerable period of time”.

She said employees now worked on average 37.1 hours a week, meaning 2.1 hours a week on average was paid at overtime rates, which was double time.

The union believes the company proposals would translate into an effective 10 per cent pay cut for employees, who earn annual salaries ranging from $65,000 to $128,000 depending on their role and hours worked.

Union members supported the mill during a challenging period financially in 2016, with workers agreeing to a 5 per cent pay cut and a resetting of wages to secure the mill’s future.

The union is seeking annual pay rises of 5 per cent, 4.5 per cent and 4 per cent over the life of the new agreement; the company has offered three annual increases of 3 per cent.

Opal did not directly answer a series of written questions put by The Australian, instead releasing a statement reiterating that it was focused on reaching an agreement “that is fair and allows us to supply our customers with quality paper in an extremely competitive and evolving market”.

“The terms and conditions that were appropriate many years ago in previous enterprise agreements are not relevant to the mill’s operations today, nor do they reflect the way Australian paper mills operate in 2025,” a spokesperson said. “As a result of the challenges and changes to our operating conditions brought on from the loss of wood supply from VicForests, Opal is seeking to make fair and reasonable changes to its operations and embody these in a fair and competitive … agreement.”