More than 500 smelter workers start industrial action as tariff threat hangs over industry

More than 500 workers from the Newscastle smelter have started industrial action over pay as Anthony Albanese pleads with Donald Trump for tariff relief.

More than 500 workers at one of Australia’s biggest aluminium smelters will begin industrial action today as the Albanese government pleads with US president Donald Trump to spare the industry from tariffs.

Australian Workers Union members at the Tomago smelter near Newcastle in NSW will begin stop work action after reaching a stalemate with management over a new pay deal.

Rio Tinto, which owns about 51 per cent of Tomago alongside Europe-based Saint-Gobain and others, is understood to have been deeply frustrated by the dispute, which reached a head with Australia trying to avoid 25 per cent tariffs on aluminium and steel imports to the US.

AWU state secretary Tony Cullinan acknowledged the tariff threat to the Australian aluminium industry and said he hoped the dispute could be settled quickly.

“I’m hopeful we can resolve it pretty quickly. With some of the conversations around tariffs and other things in the industry, it’s probably not a good time to be considering industrial action,” he said.

Mr Cullinan said Tomago management had warned unions and workers the smelter was struggling with stability issues on top of the threat of tariffs.

Rio aluminium boss Jérôme Pécresse noted last week smelters were very difficult to stop and restart, and required un-interruptible power supply.

Mr Cullinan said: “The company’s made it clear that they’ve had a number of ongoing plant stability problems, and industrial action doesn’t assist with that.

“The last thing we want to do is compromise the operation of the plant, but our guys want to fight for an improved wage offer.”

Prime Minister Anthony Albanese speaking to workers at Tomago Aluminium. Picture: Adam Yip

Workers are planning to begin a series 30-minute stoppages, which in effect means some crews could walk off the job three hours before the scheduled end of their shifts.

The industrial action is set to escalate if there is not a breakthrough in the talks, which reached an impasse late on Monday.

Some 560 workers at Tomago are seeking annual pay rises of 4 per cent over three years with two $1000 sign-on payments and back-pay.

The union said Tomago had offered 4 per cent in the first year followed by 3.5 per cent in each of the next two years, a one-off $1000 sign-on payment and no back pay.

The industrial action at Tomago comes less than a month after Mr Albanese and industry minister Ed Husic visited the smelter to announce $2bn in incentives to encourage aluminium producers to switch to renewables as part of the government’s Future Made in Australia policy.

Tomago workers have voted overwhelming in favour of a range of industrial action, including indefinite strikes, if they cannot reach agreement with Tomago.

“We haven’t got a deal there and we’ll be commencing industrial action later today,” Mr Cullinan said.

“The company’s made it clear last night that they’re not improving the current offer and that it is their final offer.

“So, I’m not sure what the circuit breaker will be but our members have decided to continue with their campaign of industrial action in an attempt to get a better offer.”

Mr Cullinan said the workers had given ground in the negotiations to date and already absorbed some of the woes in the Australian aluminium industry in recent times.

“Over the past decade or so, they’ve had some pretty average outcomes on the basis that the industry has been struggling. CPI been up the last few years and they’ve clearly gone backwards,” he said.

“They’re saying to us that they’re ready for a fight to get a decent outcome.”

Rio referred questions on the dispute to Tomago, which is operated by a joint venture company. Tomago Aluminium has been contacted for comment.

The smelter produces about 600,000 tonnes of aluminium per year and has more than 1000 employees overall, as well as about 200 full-time contractors.

Originally published as More than 500 smelter workers start industrial action as tariff threat hangs over industry