According to media reports, Essity, a tissue giant, and Visy, an Australian packaging and recycling company, have been unable to reach a new agreement with New Zealand workers.

At its factory in Kawerau, New Zealand, about 145 factory workers are in a state of shutdown. According to reports, this factory produces about 70% of toilet paper in New Zealand.

Per Lorentz, Essity’s news manager, told Dagens Industri, a Swedish magazine, “Our view is that the wage requirements of the trade union are very important, which will endanger local employment in the long run. Our current wages of Kawerau employees are almost twice the median wages of workers in New Zealand factories.”

According to reports, at the beginning of the negotiation, Essity proposed a salary increase of 3% and a cash reward of NZ $1500 per year for three years, but was rejected by the trade union and workers. The trade union demanded that the total salary increase of employees in the next three years be 15%, which they believed was based on the market analyst’s prediction of future cost of living growth.

Essity is a global health and wellness company headquartered in Stockholm, Sweden. The company develops, manufactures and sells products and solutions in the field of hygiene and health. The product portfolio includes tissue, baby diapers, female care (menstrual pads, etc.), incontinence products, compression therapy, plastic surgery and wound care.