The labor tribunal in Australia has directed unionized workers at Wilmar Sugar and Renewables, the nation’s largest sugar producer, to suspend their industrial action for six weeks, according to the company.
This decision from the Fair Work Commission will allow Wilmar’s eight sugar mills to avoid further disruptions.
A dispute over wages initiated strikes in May, delaying and disrupting the start of seasonal cane crushing operations and posing a risk to Australia’s sugar output.
“The suspension of industrial action removes immediate threats to the annual crushing season and creates a conducive environment for negotiations with the unions,” stated a spokesperson from Wilmar.
Australian Workers’ Union official Jim Wilson mentioned that unions plan to challenge the decision. However, he acknowledged the likelihood of the Fair Work Commission extending the suspension order to prevent future strikes. Should negotiations stall in the months ahead, the commission may intervene with a mandated pay agreement.
Wilmar Sugar and Renewables account for more than half of Australia’s sugar production, with the majority exported.