$1bn Collins Class submarine HMAS Rankine marooned at Osborne by union strike threat

Adelaide-built HMAS Rankin is being held hostage at an Osborne dock rather than starting a two-year deep maintenance program.

The $1bn HMAS Rankin submarine is being held hostage at Osborne Naval Shipyard by a union strike threat stopping the Adelaide-built boat being taken from the water for deep maintenance.

The Collins Class submarine has been tied up at ASC’s Osborne wharf for about a month, ahead of a scheduled full-cycle docking lasting two years.

But it is understood ASC, formerly the Australian Submarine Corporation, will not risk taking the submarine from the water for the time-consuming transfer to maintenance sheds without a guarantee HMAS Rankin will not be marooned by a snap strike.

Collins Class submarine HMAS Rankin tied up in Geelong. Picture: NIGEL HALLETT

ASC has been hit with ongoing protected industrial action by the Australian Manufacturing Workers’ Union and the Electrical Trades Union, which are seeking pay parity with counterparts at ASC’s Western Australian operations – talks continue on Wednesday.

It is understood ASC has written to the unions seeking a guarantee that Rankin’s transfer to maintenance sheds would not be affected by strike action – but has not received a response.

A federal government spokeswoman said Defence was “working with ASC to mitigate the impacts on submarine sustainment” and expected that “the impacts of any protected industrial action in the short-term will be manageable.”

“ASC is currently undergoing negotiations with employee and union representatives at its Osborne site in South Australia,” the government spokeswoman said.

“As with all enterprise agreement negotiations, the Government expects ASC and union and employee representatives to conduct these negotiations in good faith.”

HMAS Rankin at sea. Picture: Supplied

An AMWU spokeswoman said the unions were “still seeking pay parity with their WA counterparts” on behalf of all SA workers at ASC.

“There will be a meeting with ASC tomorrow (Wednesday) to negotiate further. The latest offer was five per cent short of parity,” she said.

“ We are hopeful of reaching a positive outcome for our workers. There is ongoing industrial action.”

An AMWU statement on May 23 said ASC’s WA workers get about 17 per cent more pay, on average, than their SA counterparts, despite those WA workers being trained in SA and paid more in the process than their trainers.

It is understood this was originally introduced to reflect a higher cost of living in WA than SA.

Launch of Collins Class submarine HMAS Rankin at Australian Submarine Corporation at Osborne on November 7, 2001

ASC built the six Collins Class submarines at Osborne under a $5bn contract signed in 1987. ASC on Saturday issued a statement saying managing director Stuart Whiley had met with senior union representatives to present further offers but these had been rejected.

“ASC has once again urged the unions and their members to defer to the Fair Work

Commission for a judgement and they have again rejected this offer. ASC will continue to negotiate with the unions and its workforce in good faith,” the June 22 statement said.