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Sugar cane. Picture: BLOOMBERG
Sugar cane. Picture: BLOOMBERG

Canberra — Australia’s largest sugar producer would bar workers who took part in strike action from its mills, the company said on Tuesday, escalating an industrial dispute over pay that has already delayed the start of sugar production.

“Wilmar Sugar and Renewables advised more than 1,200 wages employees that anyone participating in industrial action from start of shifts on Wednesday June 5) will be locked out until further notice,” the company said. Locked-out workers would not be able to enter Wilmar’s facilities and would not be paid until the measure was lifted, it said.

Wilmar Sugar and Renewables has eight mills on Australia’s northeast coast that produce more than half of the country’s sugar during the cane crushing season that runs from June to November. It is owned by Singapore-based Wilmar International.

The company has already delayed the start of cane processing at its mills by between two and nine days after strikes beginning last month disrupted preparations. Australia is the world’s fourth-largest sugar exporter. A long delay to crushing could damage cane growers and reduce production.

Wage negotiations are paused until next week when workers will vote on an offer that unions say is too low and will be rejected. Rolling work stoppages and bans on performing certain jobs and overtime were planned in the run-up to the ballot.

Union delegates were meeting to decide whether to suspend strike action until the vote, which would allow employees to keep working, Australian Workers’ Union official Jim Wilson said.

The union also said workers at Tully Sugar, a mill in northeast Australia owned by Chinese conglomerate COFCO, had issued striking workers with a lockout notice on Tuesday. As with Wilmar, workers at Tully are seeking a larger pay rise and industrial action has delayed the start of its cane crush.

Tully, COFCO and COFCO Sugar did not respond to requests for comment.

Union officials described the lockout notices as bullying and intimidation.

A Wilmar spokesperson said: “We respect employee rights to union membership and their right to take lawful industrial action,” but added that the company had tried to negotiate and had the right under employment law to protect its interests.

Reuters

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