Member Notice – CSA Update

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Dear Kalamia Members,


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.

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.

Please do not hesitate to contact me should you have any queries or wish to discuss this matter further.

David Rutledge
Executive Manager/Company Secretary