Four-year wage freeze ends for Port Kembla steelworkers

After seven months of industrial action, workers at the ­nation’s biggest steelworks, have backed a three-year pay deal.

The Port Kembla Steelworks, where a four-year- pay freeze has ended with a new wage deal. Picture: Dean Lewins/AAP

Workers at Port Kembla, the ­nation’s biggest steelworks, have backed a three-year pay deal that delivers pay rises totalling 11 per cent, a $1500 sign-on bonus and a share of company profits.

Following seven months of ­industrial action, the in-principle agreement reinstates the payment to workers of penalties for shifts when they call in sick and do not work. However, the payment of the penalties is conditional on workers gradually reducing the current 4.8 per cent absenteeism rate.

If the rate is not at the target trend rate when measured at different times over the life of the agreement, the condition will be removed.

Unions embarked on months of industrial action last year after accusing the company of refusing to adequately compensate workers who endured a pay freeze and cuts to conditions to help the business return to bumper profits.

BlueScope workers endorsed a ground-breaking agreement in 2015 after union leaders accepted that hundreds of job losses, a wage freeze and restructured work practices were needed to save the steelworks.

The job cuts and pay freeze helped deliver $60 million in ­labour cost savings and the union had said workers wanted a 10 per cent pay rise over three years to compensate for not receiving a wage increase for four years.

BlueScope lifted its original 7 per cent pay rise offer to 9 per cent and then 11 per cent.

BlueScope general manager, manufacturing, Dave Bell said yesterday the company was pleased with the support from workers for the proposed agreement. “We believe the combination of locking in pay rises for the next three years, as well as sharing in BlueScope’s profits via our profit-share plan, is a great outcome for everyone,’’ he said.

“We now look forward to formalising the vote in the coming weeks.”

Australian Workers Union national secretary Daniel Walton said the deal was “finally the agreement that BlueScope workers at Port Kembla deserve”.

“I wish it had come sooner. We’ve been in negotiations for over a year, and engaged in industrial action for seven long months,’’ he said.

He said the decision by workers to accept a pay freeze in 2015 was “courageous, and their decision this time around to dig in and fight was courageous too”.