In a significant move aimed at resolving ongoing enterprise bargaining disputes, Wilmar has this week announced a new enterprise agreement (EA) offer to its employees. The offer marks a crucial phase in negotiations and could potentially bring about substantial changes for the company’s workforce and end the debilitating strikes in the North Queensland industry, which have been estimated to cost canegrowers $4m each day.
Wilmar’s proposed three-year enterprise agreement includes several notable components:
- Wage Increases: The offer features a total wage increase of 16% over the three years. Notably, the first two wage rises, which collectively amount to 12%, are scheduled to be paid by Christmas this year.
- Bonus: An upfront bonus of $2,500 is included in the offer, providing an immediate financial benefit to employees.
- Allowance: A $25 weekly allowance is proposed for tradespeople who hold an electrical licence, reflecting the company’s recognition of specialized skills.
- Job Security: The offer also includes 35 permanent job positions for existing seasonal or fixed-term employees, aimed at providing greater job security and stability.
The 1,300 Wilmar employees covered by the EA will have the opportunity to vote on the offer on September 12th and 13th 2024.
Wilmar’s offer aligns closely with the recommendations made by Fair Work Commissioner Bernie Riordan last month. Commissioner Riordan suggested an average annual wage increase of 5.3% and incremental wage rises over three years, both of which are reflected in Wilmar’s proposal.
Wilmar is hopeful that the offer will be accepted by unions and employees, providing a pathway to resolving the dispute. However, if the offer is rejected, Wilmar may be forced to seek an intractable bargaining determination from the Fair Work Commission under the Fair Work Act, which allows the Fair Work Commission to intervene in enterprise bargaining disputes and make orders in respect of enterprise agreements when negotiations reach a stalemate.
Wilmar’s offer represents a significant step towards resolving the current bargaining dispute. By aligning closely with the Fair Work Commissioner’s recommendations, the company will be hoping to address employee concerns while also seeking to avoid any further delays in what has already been a lengthy and contentious bargaining process.
The outcome of the upcoming vote will have significant ramifications for both the local region and the broader sugar industry in North Queensland. If accepted, it will provide much needed relief to the region’s economy, especially for farmers who have suffered due to the disruptions. However, if it is rejected, strikes could continue to threaten productivity with potential longer term economic damage and instability of the sugar supply chain in the region.
