The Australian Workers’ Union (AWU) has announced it will resume industrial action at Tomago Aluminium after negotiations over a new wage agreement reached an impasse.
The AWU claims that management has refused to continue bargaining in good faith, prompting the decision to escalate protected industrial action.
AWU NSW Secretary Tony Callinan confirmed that union members will commence stoppages starting early Sunday morning, with a total work stoppage planned for six hours from 2 a.m. and a further three-hour stoppage scheduled for Tuesday morning.
Callinan said the union remains committed to securing a fair outcome for workers who have faced increasing financial pressure.
“Our members have effectively taken pay cuts over the past three years as inflation has run above 6.6%,” Callinan explained.
“They’ve done their part to support the company’s viability, but enough is enough, we can’t continue going backwards.”
The wage dispute revolves around a difference of just one per cent in annual increases. Workers have put forward a claim of 4 per cent per year over three years with backdated pay to 31 December 31 2024, when the last agreement expired.
Management, however, has offered 4 per cent, followed by 3.5 per cent increases in the second and third years, with no back pay.
Callinan argued that workers have effectively taken real wage cuts as inflation has remained above 6.6 per cent in recent years. “They’ve done their part, but they cannot continue going backwards,” he said.
The AWU previously initiated a brief period of industrial action last week, which the union says highlighted the critical role workers play in the facility’s operations, causing production delays.
Tomago Aluminium, which consumes approximately 1,000 megawatt hours of electricity and accounts for 12-13 per cent of New South Wales’ power usage, employs around 1,000 workers and generates billions in revenue.
The resumption of industrial action comes at a time when the federal government has pledged significant support to the sector, including a $2 billion tax incentive package announced during a recent visit by the Prime Minister to the facility.
The AWU has emphasised its role in working constructively with both government and industry to ensure the long-term sustainability of aluminium production in Australia.
According to Callinan, the AWU temporarily halted industrial action last week and agreed to no further disruptions until after Friday, 22 February, in exchange for an assurance from Tomago Aluminium that negotiations would continue.
However, he claimed that when talks resumed on Monday, management simply reiterated its existing offer and announced plans to take it directly to a vote.
“It’s disappointing to see Tomago management respond to our good faith offer by refusing to continue negotiations and provide workers with a fair wage increase,” Callinan said.
“[P]ayroll cost is a relatively small portion of their budget compared to other industries, which is why management’s position is so ridiculous.”
The AWU has indicated that its members are prepared to continue industrial action until a resolution is reached.
While the union remains open to further discussions, it maintains that any agreement must adequately reflect workers’ contributions and safeguard wages against inflation.