Unions reject pay rise of 11pc over two years

Tomago Aluminium will put a proposed pay deal offering 11 per cent in wage increases over two years directly to a vote of employees.

Aluminium produced at the Tomago smelter in NSW.

Australia’s largest smelter, Tomago Aluminium, will put a proposed pay deal offering 11 per cent in wage increases over two years directly to a vote of employees after unions rejected the offer.

The Hunter Valley smelter, the nation’s biggest single consumer of power, offered maintenance workers a 6 per cent pay rise for the first year of the agreement and a 5 per cent increase for the second year.

However, Australian Manufacturing Workers Union and Electrical Trade Union members last week rejected the offer, with officials pushing for a 13 per cent increase – 6 per cent in the first year followed by 7 per cent.

Union members voted in favour of protected industrial ­action and have instituted bans that they have voted to stay in place until May 15.

The AMWU said the proposed pay rises were “well below” the inflation rate.

AMWU Newcastle lead organiser Brad Pidgeon said the ­unions would back their members to achieve a “fair outcome”.

“While wages are one of the claims being pursued by the combined unions, negotiations that started in February this year have now deteriorated due to the company releasing a final offer which was heavily rejected by the combined unions’ membership,” Mr Pidgeon said.

“Industrial action is the last resort but with cost-of-living pressures remaining high, our members are asking for a decent wage to help alleviate the pressures on them and their families.

“Tomago’s highly skilled maintenance workers are also seeking parity on other conditions with production workers on site. Members of the combined unions have looked after the company during the most extreme of hard times – not only during Covid but for many years leading up. They only want what is fair and reasonable.”

Tomago Aluminium chief people, safety and environment officer Natalie Britt said the company believed the 11 per cent offer was more than reasonable and would put it to a vote of employees next week.

In a joint statement with Tomago Aluminium chief executive Andrew Robbins, Ms Britt said the company was “committed to providing employees with fair and reasonable entitlements that support our culture. which is inclusive and performance-driven”.

“Tomago respects the rights of its employees to undertake protected industrial action and that process will take its ordinary course,” they said.

“Tomago will continue to work with all bargaining representatives, in good faith, to achieve an agreement for its ­employees.”

They said Tomago had put in place measures to minimise disruption to business, clients and customers during this period and to prevent any risks to health and safety.

Mr Pidgeon said workers had endured real wage cuts in recent years and wanted the pay rises in the new agreement to keep pace with inflation

“What they are asking for is ­really not unreasonable,” Mr ­Pidgeon said.

About 230 workers are involved in the industrial action.