‘What planet are they on?’: Unions demand King scrap MARS deal

Two powerful unions have accused the Albanese government of endangering workers by awarding a $35.6m contract to dismantle the Northern Endeavour to a Danish shipyard with a troubled safety record.

Unions are calling on Resources Minister Madeleine King to nix a plan to recycle the Northern Endeavour at a controversial shipyard in Denmark. Picture: Department of Industry, Science and Resources.

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Two major unions have launched a blistering attack against Resources Minister Madeleine King’s department, accusing it of jeopardising worker safety by sending the Northern Endeavour to a Danish shipyard with a chequered history of workplace accidents and safety violations.

The Australian on Sunday reported that Modern American Recycling Services – the recipient of a $35.6 million government contract to dismantle the publicly owned Northern Endeavour oil platform – has been plagued by repeated safety breaches at its shipyard in Denmark.

Among the most serious allegations against MARS are claims it concealed workplace accidents from authorities, failed to supply adequate safety equipment, and employed a subcontractor that housed migrant workers in illegal accommodation.

MUA assistant national secretary Thomas Mayo Picture: NewsWire

AWU national secretary Paul Farrow

Despite the company’s record, the Department of Industry, Science and Resources insists MARS meets its commitment to safely dispose of the vessel, which came under government control in 2021 following the collapse of its previous proprietor.

On Wednesday, unions representing Australia’s offshore workforce slammed the decision, labelling the vessel’s planned export to Denmark as a “stain” on Australia’s international reputation and demanded the Albanese government scrap the contract.

Urging Labor to “turn the ship around” and bring the work back to Australia, the Maritime Union’s assistant national secretary Thomas Mayo accused the government of “exporting danger” overseas instead of establishing a local workforce to handle a pipeline of future decommissioning work.

“Even if international options were truly the only choice, why not send the Northern Endeavour to one of the many yards in Europe or Asia that actually meet the highest global safety and environmental standards?” he said.

“Instead, they chose a facility in Denmark plagued by safety breaches, legal violations, and reports of worker exploitation. It’s not just a failure of policy – it’s a failure of principle.”

Ms King’s department maintains that MARS aligns with its plan to safety scrap the vessel. Picture: NewsWire / Martin Ollman

Despite Ms King’s pledge to use the Northern Endeavour to help kickstart a local decommissioning industry, most of the work to dismantle the vessel has been handed to UK oil and gas contractor Petrofac, while local businesses hoping to recycle the platform have been rejected.

Paul Farrow, the national secretary of the Australian Workers Union, demanded the department issue an explanation behind its decision to send the vessel more than 13,000km to Denmark when Australian business had bid for the work to be done locally.

“How can the government explain its appalling lack of judgment on MARS? Did the dog eat their homework? Local workers can do the job safer, cleaner, better,” he said, demanding Labor own its “appalling lack of judgement” and reverse the decision.

“You get what you pay for – and with so many issues at MARS, the government certainly is with this cut-price stitch up.”

The government has maintained that the contract with MARS includes “strict safety and environmental requirements”, but has refused to say whether it was aware of the company’s controversial history.