Wilmar Sugar hits back at ‘false’ AWU, AMWU, CEPU claims as crush start delayed

Wilmar has confirmed a delay to the start of the sugar-cane harvest and struck back at what it says are a number of false union claims ahead of more strikes.

A Wilmar Sugar Australia cane-train locomotive in operation in picturesque Hinchinbrook Shire. Picture: Cameron Laird

Wilmar Sugar and Renewables has confirmed a delay to the start of the sugar-cane harvest and struck back at what it says are a number of false union claims ahead of more potential strike action.

Australia’s largest raw-sugar producer and exporter said planned start dates at seven of its eight mills had been pushed back by two days and the Plane Creek Mill at Sarina by a week.

The new start dates are June 13 for Macknade Mill and June 20 for Victoria Mill, both in the Herbert River district, June 6 for all four Burdekin mills (Invicta, Pioneer, Kalamia and Inkerman), June 13 for Proserpine Mill and June 18 for Plane Creek.

In a document sent to cane growers, Wilmar rejected a statement from the Australian Workers Union that the crush was already set to be delayed due to its “mismanagement and lack of reinvestment in the mills”.

“Every day of further stoppage at our factories adds delays in completing preparatory work programs.”

Wilmar Sugar Australia's Macknade Mill, Herbert River district, Hinchinbrook. The mill first opened 150 years ago and is Australia’s oldest. Picture: Cameron Bates

The company said it had a “strong record of reinvesting in its assets”.

“Since Wilmar bought Sucrogen in 2010, spending on capital and maintenance in our factories has averaged $150 million per year,” it says.

“In 2024, the company is spending a record $250 million across its Queensland factories.”

Hundreds of Wilmar workers represented by the AWU, Australian Manufacturing Workers Union and Communications, Electrical and Plumbing Union of Australia went on strike on May 9 and 13.

The company employs about 2000 people, predominantly in North Queensland.

Employment agreement negotiations are being mediated by the Fair Work Commission, with the next bargaining meeting scheduled for May 22.

A Wilmar Sugar Australia cane train towing empty cane bins from Victoria Mill through Ingham, Hinchinbrook Shire. Picture: Cameron Bates

The Wilmar document, obtained by the Townsville Bulletin, says it was intended to counter union claims “that are not consistent with the facts available on the public record” and to ensure cane growers had “accurate information”.

The company rejected claims it was failing to pay a fair wage to its workers who produced a massive profit in 2023.

“Wilmar Sugar and Renewables did not make a billion dollars in profit last year, or any other year.”

It says the company is an Australian business for which an EA is being negotiated.

“It should not be confused with its parent company, Wilmar International, which operates in 53 countries and is a diversified manufacturer and leading agrifood business in Asia.”

Wilmar is now offering a 14.25 per cent in wage increases over 42 months, with the first-year increase of 5 percent paid from June 2024 and the next increase paid from December 2024.

The unions are seeking a 22 per cent pay increase over three years, plus log items equivalent to an aggregate claim of 25 per cent.

Victoria Mill, one of Wilmar Sugar Australia's two mills in Herbert River and the largest in Australia. It is now expected to fire up on June 20, two days later than scheduled, depending on any additional strike action. Picture: Cameron Bates

Wilmar says there were more than 4615 enterprise agreements lodged with Fair Work in the 12 months to March 8, 2024, with an average annualised wage increase of 3.8 per cent.

“Wilmar’s current offer represents an annualised wage increase of 3.8 per cent in the first three years,” it says.

“However, the current offer from unions is an annualised average of 7.3 per cent.

The company said that with the 3 per cent being sought for log items included, the union package equates to an annualised average of 8.3 percent – “double the national average for EAs lodged in the past year”.

Additional strikes are planned for Tuesday and Thursday.

AWU Northern District Secretary Jim Wilson said on Friday that Wilmar had reduced its wage claim by 3 per cent, “moving numbers around to make their counteroffer appear sweeter than it actually is.”

“We are hopeful that we won’t have to go ahead with the Thursday strike if Wilmar comes to the table (on Wednesday) with a fair agreement,” he said.

“The strikes at Wilmar will continue until we reach a deal that reflects the worth of our members and the sugar communities near these mills.”

Mr Wilson said Wilmar could end the dispute “whenever they want”.

“Simply come to the bargaining table with a fair offer that reflects the worth of our workers, and we’ll get back to work,” he said.

“We are hitting Wilmar where it hurts, we are not backing down, and with the community standing with us we will win.”

Wilmar said that it was disappointing that the unions were persisting with industrial action while EA negotiations were underway.

“We are keeping our key stakeholders informed and doing everything possible to mitigate the impact of industrial action.”

Originally published as Wilmar Sugar hits back at ‘false’ AWU, AMWU, CEPU claims as crush start delayed