The billion-dollar Sydney projects delayed by pay deal revealed

Critical infrastructure projects are being held up across the state by striking electricians, with small business owners warning they’ll be bankrupt by Christmas and energy giants accusing the ETU of holding NSW to ransom.

Striking sparkies wanting a big payrise are delaying a laundry list of critical infrastructure projects across NSW, revealed by The Daily Telegraph today, including thousands of urgently needed homes and highway upgrades.

The Electrical Trades Union’s industrial action against electricity suppliers has affected thousands of projects, with union members rejecting multiple pay rise offers made by the state’s three biggest energy companies – Ausgrid, Essential Energy and Endeavour Energy.

Electricians want a 24 per cent pay rise over three years, leading some to warn energy prices could increase if the companies cave into their demands.

The protracted strikes have led some affected small businesses to sound the alarm that they could go under, with one telling us: “We will be gone by Christmas”.

Trilogy Apartments in Macquarie Park being held up union action. Picture Thomas Lisson

Since August 1, more than 80 per cent of Ausgrid’s customer connection jobs have been cancelled, with unionised electricians refusing to switch off power at construction sites or connect sites to power as part of their industrial action, putting multiple projects on hold.

Among the thousands of developments crippled by the ETU’s strike action is a $28.4 million project to install two new electric harbour cranes at the Port of Newcastle.

A major $360 million Meriton housing development at Macquarie Park has also been delayed, with the project designed to deliver 1000 new apartments.

Strike action has meant the final fit-out has been delayed, with concerns the rolling action will hinder other Meriton projects.

Ausgrid has a further 17 Meriton connection projects, with five planned energisation dates between September and December that could be impacted.

And a children’s playground near Cronulla Beach has been stalled, with striking electricians refusing to allow old street lights at the park to be replaced with newer safe ones.

As a result Dunningham Park is closed to the public.

A upgrade at the Royal Prince Alfred Hospital has also been delayed due to the industrial action.

Sutherland Shire mayor Carmelo Pesce said the community had been waiting for the repairs since May because the lights were a serious public safety risk.

“Since then, heavy winds have made the lampposts even more unsafe and we are at desperate risk of a 25kg lamppost falling over and seriously injuring or even killing someone,” he said.

Sutherland Shire Mayor Carmelo Pesce at Dunningham Park, Cronulla. ETU Strikes are causing issues with construction around NSW. This Park is one of them. Picture: Tim Hunter

State-owned Essential Energy said more than 600 planned outages have been cancelled since August 8, while Endeavour Energy, which has been negotiating with the ETU since February, has had 1800 planned outages cancelled, including at more than 50 apartment blocks.

Planned outages are when power is cut off to a site so construction can safely commence.

NSW’s energy transition is also under threat due to the strikes with multiple renewable energy projects delayed.

Dunningham Park in Cronulla has been deemed unsafe as ETU Strikes are preventing the removal of old street lights Picture: Tim Hunter

Industrial action has resulted in the construction of the $950 million Snowy Hydro Kurri Kurri power station being delayed, with generators unable to be commissioned.

Installation of multiple electric vehicle charging stations across the state have also ceased.

A $950 million redevelopment of the Royal Prince Alfred Hospital has been put on hold, with industrial action preventing the construction of critical care areas, operating theatres and expanded inpatient wards.

The Port of Newcastle in Australia $32.4 million electrical harbour cranes have been delayed.

A spokesman for Ausgrid said staff had been offered a seven per cent pay increase along with cost-of-living protection.

“We have agreed to 80 new terms, including increased allowances. We expect many employees will receive as much as a 21 per cent pay increase over three years,” the spokesman said.

As another part of their industrial action, the ETU has also refused to remove diesel generators connected to homes, which are a temporary power solution when new power cables are installed.

Endeavour Energy customers in one street were not able to open their windows for five months due to noise and fumes from the generator.

A Baulkham Hills primary school was also hooked up to a generator for so long the school complained the students were being affected by the fumes.

The ETU refused to move the generator till Fair Work intervened.

Essential Energy has offered a 15 per cent pay rise over three years, with a $5000 upfront payment.

Tony Devos said the industrial action will put small accredited service providers out of business. Pictured in his warehouse in Arndell Park. Photo: Tom Parrish

The ETU has not accepted this offer and have instead applied to the Fair Work Commission for an additional Action Ballot Order, which if approved would increase the severity of the industrial action, giving the union 25 new bans they can participate in.

An Essential Energy spokesman said the union’s wage claims amount to $275 million, which is well above the Australian Energy Regulator’s decision on the company’s revenues and prices.

ETU NSW secretary Allen Hicks denied the industrial action was delaying projects.

“To suggest that our lawful protected industrial action is stopping all of these jobs is a gross misrepresentation and factually incorrect,” he said.

Small accredited service providers (ASP) who take on contracts to help connect projects to electricity say many of them could be bankrupt by Christmas time should the industrial action continue.

Small business owner Tony Devos along with other affected businesses is trying to organise a class action against the union.

Mr Devos said his business had gone from an annual turnover of $1.6 million in 2023 to $250,000 this year.

“I have more than $1 million worth of contracts that are ready to be worked on but we can’t go to the site because the action is holding up the projects,” he said.

“We will be gone by Christmas, the whole ASP industry in the state will collapse if the action continues.”

A new pay deal from Ausgrid will be voted on by workers this week, with ballots to close on Tuesday.

Originally published as The billion-dollar Sydney projects delayed by pay deal revealed