Canberra: Operations at Australia’s biggest sugar refinery have come to a standstill because the workers went on strike demanding better pay. This shutdown at the Inkerman mill, owned by Wilmar Sugar and Renewables, is causing a major disruption in the industry and throwing the upcoming crushing season into uncertainty, reported Reuters.
The disagreement between the sugar giant and its workforce has already delayed the start of the crushing season at all eight of Wilmar’s mills in northeast Queensland. The workers turned down a proposed pay increase of 14.25% over three years, along with a $1,000 sign-on bonus, and instead pushed for an 18% hike.
In anticipation of further disruptions, Wilmar decided to shut down the Inkerman mill, which had only just begun processing cane two days ago. The company expressed concerns about safety and operational difficulties if the workers continued with their short-term stoppages and bans.
The mill in the northeastern Burdekin region is the only one of the eight operated by Wilmar Sugar and Renewables in Australia that has commenced its cane crushing season. The remaining mills are scheduled to begin operations in the coming weeks.
The pay dispute delayed the start of processing at all eight mills, posing a growing threat to Australian sugar production and exports by potentially shortening the crushing season and leaving cane unharvested.
Workers rejected a pay offer in a vote that concluded on Tuesday and have initiated short-term work stoppages and bans, the company stated.
“The only sugar mill operating in the Burdekin, Inkerman Mill, has been forced to shut down overnight after union delegates advised that workers plan to stop work at that site, and at least two other sites, for one hour at midday today,” Wilmar said in a statement.
Operations manager Mike McLeod explained that the company decided to halt the mill for operational and safety reasons due to the uncertainty of further work stoppages on Wednesday.
“A safe shutdown typically takes about 12 hours and must be conducted with care and precision,” he said. “We now need to assess whether we can proceed with our planned start at Invicta and Kalamia mills later this week,” McLeod added.
The cane-crushing season on Australia’s hot and humid northeast coast begins in June and runs through November.
