Mill Pay Dispute Costing Farming Families Millions
CANEGROWERS has welcomed news that Wilmar and the unions representing workers at the company’s nine Queensland sugar mills have accepted a mediation offer from the Fair Work Commission.
CANEGROWERS Chairman Owen Menkens expressed hope that this mediation marks the beginning of the end for the prolonged pay dispute affecting half the industry and threatening to derail the season.
“Sugarcane farming families have been losing $4 million a day due to strike action at Wilmar mills, causing the crush to fall up to 20% behind schedule in some districts,” Mr. Menkens said on the Wilmar Mill.
“It’s been evident for weeks that the parties had reached a negotiation stalemate, so resolving this issue is long overdue. Communication between the mills and their grower suppliers has been nearly non-existent, leaving growers in the dark about daily developments. Cane harvesters, contractors, farmers, and farm workers have been operating under complete uncertainty, and they have had enough.”
“There are no winners in this situation, but there are clear losers—the cane growing families whose livelihoods are being devastated. I personally know growers losing tens of thousands daily during stoppages. These farmers have invested millions in growing and preparing this crop for harvest, facing huge bills for fertiliser, chemicals, staffing, machinery, and maintenance. They are not just losing income; they are unable to service the huge debts that come with farming.”
The ongoing industrial action is the latest issue for a milling sector plagued by performance problems, dragging down the productivity and profitability of the entire industry and impacting the financial and mental wellbeing of farming families and communities.
“Certain parts of the milling sector have been underperforming for years, affecting season length, cane quality, and harvesting costs. Every year, cane is left unharvested in the paddock. The inability of some mills to crush the crop within the June to November window is hurting growers, the industry, and communities reliant on sugarcane for survival,” Mr. Menkens said.
“CANEGROWERS has been working with many milling companies and other industry organisations on this problem. We know how much it is costing the industry and we also know the solution. Milling companies need to invest long-term in their factories and infrastructure. Simply keeping mills running year after year isn’t enough; they need significant investments to upgrade and modernise their assets and must train and maintain qualified staff.”
Mr. Menkens noted that some milling companies have successfully invested and collaborated with the growing sector, thriving as a result.
“We realise mills, especially older ones, are difficult to run and maintain. The logistics of moving and crushing 35 million tonnes of cane per year are complex. But it can be done successfully, and we need to work together to achieve this.
“MSF’s Tableland mill is currently crushing at around 97% capacity and should serve as a shining example to those mills struggling to maintain 70-80% availability. MSF’s Mulgrave mill has even joined forces with Mossman cane growers to ensure they get their cane crushed this year following the closure of Mossman Mill in 2023.
“This proves that mills can perform well and work collaboratively with growers if they invest properly in their business and the industry more widely.”
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