The Australian Workers’ Union (AWU) has resumed industrial action at Tomago Aluminium after negotiations over a new wage agreement broke down.
The dispute, which centres on a narrow 1 per cent difference in pay proposals, has led to significant stoppages at the Hunter Valley smelter, one of New South Wales’s largest power consumers.
On Sunday, February 23, AWU members initiated a six-hour total work stoppage starting at 2 a.m., with another three-hour stoppage planned for the upcoming Tuesday morning (February 25).
The AWU’s revised claim seeks a 4 per cent annual pay increase over three years with backdated pay to December 31, 2024.
Management has countered with an offer of 4 per cent, followed by 3.5 per cent increases in the second and third years, without back pay.
AWU NSW Secretary Tony Callinan expressed frustration over management’s refusal to negotiate further, stating that workers have effectively endured pay cuts as inflation exceeded 6.6 per cent in recent years.
“They’ve done their part to support the company’s viability, but enough is enough — we can’t continue going backwards,” Callinan said.
Workers argue that their contributions are undervalued despite Tomago Aluminium’s strong financial performance and substantial government support.
The federal government recently announced a $2 billion tax incentive package for the aluminium industry during a visit by Prime Minister Anthony Albanese to the facility.
The brief industrial action, that took place prior to February 23, reportedly caused significant production delays, underscoring the workforce’s essential role in maintaining operations at the smelter.
Tomago Aluminium consumes approximately 1,000 megawatt hours of electricity daily — accounting for 12-13 per cent of NSW’s power usage — and employs around 1,000 workers.
Callinan criticised management’s decision to put its current offer directly to employees for a vote without further negotiations.
“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,” he said.
The AWU also accused Tomago Aluminium of docking workers an extra hour of pay during a previous industrial action on February 12, claiming this was an attempt to intimidate employees.
In response, the union lodged an application with the Fair Work Commission.
Despite the escalating conflict, the AWU remains open to further discussions but insists any agreement must protect workers’ real wages against inflation and recognise their contributions.
“AWU members have had a gutful of being disrespected by Tomago and are committed to fighting for as long as it takes to get a fair deal,” Callinan added.
The industrial action highlights broader challenges in balancing corporate profitability with fair compensation in industries heavily reliant on government support and high energy consumption.
