CANBERRA, July 1 (Reuters) - Australia's labour tribunal has ordered unionised workers at Wilmar Sugar and Renewables, the country's largest sugar maker, to suspend their industrial action for six weeks, the company said.

The decision by the Fair Work Commission will enable Wilmar's eight sugar mills - which together produce more than 2 million metric tons of sugar worth around $1 billion a year - to avoid further disruption to their operations.

A pay dispute led to strikes beginning in May that delayed and disrupted the start of seasonal cane crushing operations and threatened to reduce Australia's sugar production.

"The suspension of industrial action relieves the immediate risk to the annual crushing season, and provides clear air for negotiations with unions," a Wilmar spokesperson said in a statement.

Unions will appeal the decision, said Australian Workers' Union official Jim Wilson.

But he added that the Fair Work Commission was likely to extend its suspension order to prevent any further strikes and, if negotiations make no progress over the coming months, impose a pay deal on both sides.

Wilmar Sugar and Renewables accounts for more than half of Australia's sugar production, the bulk of which is exported. It is owned by Singapore's Wilmar International (WLIL.SI) New Tab, opens new tab.

The company said heavy rainfall in hot and humid sugar growing regions on the northeast coast over the last week had forced it to halt work at its mills but that it hoped to have them all up and running again in the coming days.

Sign up here.

https://www.reuters.com/markets/commodities/labour-tribunal-suspends-strikes-australias-biggest-sugar-maker-2024-07-01/