Union Dispute A Low Blow For Local Growers

By Amanda Wright

Production at Wilmar Sugar and Renewables’ Inkerman Mill in the Burdekin region, which kicked off the 2024 season on Monday, June 10, was abruptly halted on Wednesday due to industrial action.

The shutdown was prompted by union delegates informing the company of a planned one-hour work stoppage at Inkerman Mill and at least two other sites at midday on Wednesday.

While a one-hour stoppage might not typically force a shutdown, the delegates declined to confirm whether this would be the only stoppage at Inkerman on Wednesday. This lack of certainty left Wilmar Sugar and Renewables with no choice but to halt operations.

Mike McLeod, General Manager of Operations, expressed Wilmar’s concerns.
“A safe shutdown usually takes about 12 hours and must be carried out with care and precision. The uncertainty about stoppages presented both operational and safety concerns, leaving us no option but to shut down the mill.”

Members of the local cane growing community along with QCAR representatives. Photo credit: Melanie Napier Photography
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Industrial Action Forces Inkerman Mill Shutdown

McLeod acknowledged the impact on local growers,

“We feel for the growers who had harvested cane and those expecting to harvest in the morning. We have 6,000 tonnes of burnt cane in the Inkerman yard now, and we are told there is another 7,000 tonnes in the paddock,” Mr McLeod said.

“We had planned to be crushing at Inkerman until at least 7:30 Wednesday morning, but without certainty, we are better to stop than risk damage or injury and possibly have the mill out of commission for an extended period,” he added.

The industrial action has sparked significant concern among growers and the local community, who are feeling the brunt of the disruption. Charles Quagliata, QCAR Chair, emphasised the dire consequences.

“It’s the growers and the community who are hurting the most with this industrial action. The growers are being held for ransom and used as collateral in this dispute.”

Christian Lago, QCAR Burdekin District Committee Chairman, highlighted the immediate impact on growers, saying, “The thousands of tonnes of burnt cane in paddocks, rail bins, and on sidings without the prospect of crushing at this time is disastrous for the sugar industry as a whole.

“This shutdown was premature and hurts the growers more than anyone else.”

QCAR also said that at this stage, there has been no indication from Wilmar on whether the growers will be compensated for the loss of sugar concentration in the cane while it sits stagnant.

Stephen Ryan, CEO of QCAR, outlined the broader implications for the industry.

“Our members are directly impacted by the current industrial action, which is causing impaired cash flows across all stakeholders. The local economy is already feeling the pinch, and the Burdekin community will continue to suffer if an agreement isn't reached swiftly.”

Panikos Spyrou, QCAR's Executive Director, expressed concerns about the sustainability of the industry.

“There is a legitimate fear of a repeat of the dark and disastrous 2010 season, where industrial action prevented a timely start during fine weather, leading to a season of supply collapse when untimely wet weather set in.

“For every week lost in perfect weather, the season could be dragged out for an additional month towards the end, potentially meaning cane could stay in fields unharvested.

“The ongoing dispute is unacceptable, and the community is being held to ransom.”

The union action comes within hours of all three unions requesting a resumption of negotiations on a new enterprise agreement. This request follows the recent rejection by a majority of company employees of the company’s latest offer, which included a 14.25 per cent increase over 3.5 years, a $1,500 sign-on bonus, and 50 permanent positions for seasonal and term contract workers.

At the time of print, Wilmar was working to resume crushing cane as soon as possible at its Inkerman Mill in the Burdekin on Wednesday afternoon, and to begin production on Thursday at Invicta and Kalamia mills, despite the threat of continuing industrial action.

The company will make application to the Fair Work Commission for an urgent hearing of its argument for orders to immediately suspend protected action to allow the annual crush to proceed while enterprise agreement (EA) negotiations continue. To date the company has not exercised its right under the Fair Work Act to lock out workers participating in protected industrial action.

Mr McLeod, said that the company welcomed, and shared, the views expressed by union officials that everything possible should be done to avoid harming the interests of cane growers and the community during negotiation of an enterprise agreement.

“We need to get that cane through the mill as soon as we can,” he said.

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