About 60 sawmill workers have walked off the job at South Pine in Nelson after pay negotiations hit an impasse.
The workers at the timber processing plant say the company’s offer of 6.25% is not competitive with other businesses in the region, and does not keep up with inflation.
They are asking that the starting point be the living wage – $23.65 which takes effect from September 1.
The living wage is considered the minimum required to meet bills while also being able to participate in the community.
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The striking workers are represented by both E tū and First Union.
First Union Southern Region Secretary said over the past three years the wages had “lost significant ground against other local employers and have not kept up with the pace of inflation”.
“With inflation now running at 7.3%, members need to see wages paid at a significantly higher level than the 6.25% offered by the employer over the next 12 months.”
E tū Organiser Garth Elliot said an agreement had to meet the living wage “as a bare minimum”, as that would enable the staff to cover bills and “have a little bit extra to look after the family on a good day”.
“Low paid need to get a fair go in the current environment. Given the cost of living people are struggling to make ends meet.”
The living wage was the starting point, but they were also looking for pay parity for other trades staff to meet comparable roles in other companies, with many workers leaving to go to better paid roles elsewhere, he said.
A union member who didn’t want to be named said their loyalty to the company was going unrecognised.
“The market is booming. The company needs to pay workers a wage that reflects their skills and dedication.
“There are some people who have been at the company for up to 20 years and barely earn above minimum wage. The current offer shows no respect, particularly for long-serving members.”
South Pine has been approached for comment.
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