Category: KCGO News

The latest news from Kalamia Cane Growers and Kalagro for Members Only.

Member Notice – CSA Update

Kalagro

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Dear Kalamia Members,

CSA UPDATE

BDCG moves to resolve the Contract dispute.

Further to my email on Wednesday about the continuing frustrated negotiations with Wilmar, BDCG has made the decision to proceed to the next step of resolving this dispute.

BDCG will now commence specific negotiations with Wilmar Sugar under section 33A(1)(b) which sets a negotiation period of at least 10 business days and at the conclusion of which, if matters are still in dispute, automatically triggers the arbitration mechanism and the terms of the CSA in dispute will be decided by the Arbitrator.

The notice for negotiations under section 33A(1)(b) will be given to Wilmar next week.

KCGO and BDCG will advise growers when notice has been given.

For growers to enter into a CSA with Wilmar Sugar utilising the BDCG Collective CSA, growers will need to nominate BDCG as the grower’s Bargaining Representative.

Please find attached the form for growers to sign nominating BDCG as their Bargaining Representative.

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Please sign and return the form as soon as possible (next week if possible) to ensure BDCG is in its strongest representational position in the any arbitration that occurs.

Please note that the form preserves your nomination as Kalamia Cane Growers Organisation Ltd as a Bargaining Representative, and simply adds BDCG as a Bargaining Representative.

Other Industry body CSA developments.

We have been advised that Canegrowers Burdekin are going down a similar path to BDCG in giving notice for s 33A(1)(b) negotiations and also applying for ACCC Authority to Collectively Bargain.

We have become aware that a group of growers within Canegrowers Proserpine have been granted separate collective agreement to market with Wilmar only, but that the majority of Proserpine growers are still looking for Canegrowers to negotiate a collective agreement giving Growers Choice in Marketing which is the way BDCG believes Burdekin growers want their contract to be. read more

MEMBER NOTICE – CSA Update

Kalagro

CSA UPDATE

 Members,

 KCGO and BDCG representatives and solicitor met separately with Wilmar and later with QSL and their respective legal representatives yesterday in Brisbane in an attempt to further the conclusion of a CSA and Forward Pricing arrangements for 2017 and beyond.

 Unfortunately while the meetings were cordial and frank, and there was acknowledgement of other parties concerns and interests, and pronouncements of reasonableness and acting in good faith, etc none of the parties have relinquished their previously stated positions.

 Wilmar, that their construction of agreements and corporate structure in CSA, Forward Pricing and On-supply is commercially appropriate and meets the requirements of the Act and that they have compromised their offer to QSL in recognition of growers support of QSL, and that whilst understanding why growers would be interested in the On-supply arrangements, there is no obligation or right for growers to be a party to that agreement.

QSL, that Wilmar’s offer was not commercially acceptable even though they were now being offered title to the sugar on delivery at the shed because of other terms being imposed and that they cannot operate a Forward Pricing business under such terms.

 We asked both to drop the veil of “confidentiality” that makes it impossible for growers and their representatives to know whether the growers position is being compromised by the terms of the On-supply agreement. The responses were sympathetic but without commitment to do so.

 The legal positions remain Wilmar is not agreeing to BDCG’s agreement, BDCG is not agreeing to Wilmar’s and determination of a prevailing document through which to dispute terms and conclude an agreement seems only able to be resolved by arbitration. QSL’s position to drive an acceptable On-supply agreement is without a strong legal basis because the Act is not precise about the nature, rights or obligations of the On-supply agreement

We will seek ACCC Authorisation to try to overcome Wilmar’s objection to us collectively bargaining on non-milling aspects of the agreements, and have encouraged QSL to press on with developing its Forward Pricing Agreements even in the absence of an On-supply agreement. read more

Kalamia Member Notice – The Filling of Bins

Kalagro

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Dear Kalamia Members,

Reminder to Members

Bins must not be filled to a level where any sticks can fall on to roads or vehicles.

An incident has been reported to Ayr Police.

The industry needs to be careful not to draw the attention of the non-sugar industry community to our uncovered bins. Loading guidelines were developed and approved in 2013. They require an amount of “freeboard” so billets do not spill from the top of a bin.

Attached is a copy of the guidelines to be applied by.

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