The sugarcane Industry’s contribution to the Australian economy is well documented and communicated by Sugar Research Australia Limited (SRA)[1]. Australian sugarcane production is expected to grow at 2.3% and opportunity growth estimated at $3.6 billion over the next 5 years [2]. Our Queensland producers provide high-quality food and fibre to Australian and overseas communities, as well as deliver stewardship of the state’s natural environment. 

For the Australian sugar industry to achieve this, we will be relying heavily on our nations largest sugarcane processor Wilmar Sugar Australia to be optimally operating at exceptionally high levels of reliability and productivity.

Therefore QCAR, with the majority of its current membership being suppliers of Wilmar Sugar Australia, is immensely concerned about its third-party risk and exposure from what has transpired during the latest round of Enterprise Bargaining Agreement negotiations between Wilmar Sugar and its relevant employees and their respective Union representatives.

Whilst we have no intentions of entering into the debate and detail of this rather publicly displayed negotiation, we do have the following concerns listed below and encourage the parties to rapidly settle their impasses.

QCAR is concerned with:

1. An urgent need to take advantage of a currently available dry to start to the 2024 season.

2. Impaired Business Cashflows across all stakeholders.

3. Wilmar’s advice that their Sugarcane milling factory performance and availability has been severely compromised in recent years due to the retreating of good, experienced operators and trades personnel and their inability to secure and retain such skilled labour.

4. The dispute which has spilt into the public area.

5. Our members being directly impacted by the current industrial action.

6. Short and longer-term industry sustainability risks through reduced productivity and profitability.

7. Industry Mental Health and well-being, being linked to concerns that this may create an increased expectation on industry partners potentially causing unintended consequences, particularly where fatigue becomes unmanageable in attempting to fill the void.

8. Conjecture of a Mass Employee “Walk-out” because of this dispute.

9. A legitimate fear of a repeat of the dark and disastrous 2010 season, where industrial action prevented a timely stand-up during fine weather, eventuating in a season of supply collapse when untimely wet weather set-in.

Clearly, it is difficult to balance the tension between an employer wanting to increase their profits or Return on Investment (ROI) versus a worker’s right to be properly renumerated for their efforts.

However QCAR is of the view that willing parties can find a middle ground and with the Mills, if they were to offer sufficiently increased award rates for skilled employees in return for improved attitude and commitment in the workplace, then this would be a clear win-win for all industry stakeholders.

The restoration of industry stakeholder harmony is a strong part of QCAR’s mission towards Securing a Strong Future, and as a result, we desire to see once again the days where the sugar mill was the most desirable and esteemed career prospect in a local community which would set the highest calibre of standards in terms of employee performance and remuneration.

The principal concern of our members is that the sugar mills they supply must be optimally maintained and operated, and that mill availability must be delivered year on year, at the maximum rate of performance. To enable this, requires a fully functioning workforce that is properly staffed, trained and remunerated.

We therefore urge the parties to this dispute to promptly resolve it by taking this negotiation off-line, and to enable season commencement to proceed with urgency in the best financial interest of all parties and the directly regional economies.