BAE Systems Australia chief executive Craig Lockhart hits back at union over shipyard strike

A union leader spearheading industrial action at a $45bn naval frigate project is being accused of disrespecting a job-saving campaign fronted by Premier Peter Malinauskas.

6.11.23 - SA Premier Peter Malinauskas with BAEÕs Managing Director (Maritime) Craig Lockhart and staff at the Osbourne shipyard. Photo: Naomi Jellicoe

The chief of Adelaide’s $45bn naval frigate project has hit back at unions demanding a 30 per cent pay rise, pointedly reminding them workers and management united with the Premier to save thousands of jobs little more than a year ago.

In an exclusive interview with The Advertiser, BAE Systems Australia chief executive Craig Lockhart flatly rejected a union leader’s claim that blue-collar workers walked off the job on Monday because the firm did not recognise “the value of our skills and our work”.

Mr Lockhart accused Australian Manufacturing Workers’ Union SA acting state secretary Stuart Gordon of disrespect for accusing his team and company for not caring about its workforce.

“That challenges me as an individual personally. It also challenges the organisation, because I would remind people that it was only a year ago when we stood at the shipyard with Premier Malinauskas, where we were fighting to save the program, the Hunter program, which was subject to the surface combatant review,” Mr Lockhart said.

“And we mounted a very successful campaign that not only saved the frigate program, but the thousands of jobs concerned with that.

“Those are not the actions of a management team or a company that does not care about its workforce.”

Premier Peter Malinauskas with BAE Systems Australia chief Craig Lockhart and workers at Osborne Naval Shipyard in November, 2023. Photo: Naomi Jellicoe

Hundreds of workers gathered in November, 2023, at BAE’s Osborne Naval Shipyard headquarters to hear a rallying call from Premier Peter Malinauskas and Mr Lockhart.

Acknowledging high-level speculation about the project to build nine frigates being downgraded or relocated to BAE’s Scottish shipyard, Mr Malinauskas told the workers they were “doing something magnificent … in the service of our country”.

Mr Lockhart thanked workers for their contribution, saying: “The performance that you’re delivering in this yard is second-to-none.”

Three frigates in February last year were axed from the Hunter project because of a $20bn blowout – it is now six frigates rather than nine. They were replaced by a future air warfare destroyer build.

BAE Systems Australia workers at Osborne Naval Shipyard with Premier Peter Malinauskas and now-chief executive Craig Lockhart. Photo: Naomi Jellicoe

BAE blue-collar workers have been waging stoppages in the past month, as part of wage talks being conducted since last July.

BAE Systems Australia is offering a 12 per cent wage rise over three years but unions are rejecting the offer, saying the workers just starting frigate construction are underpaid by an average 20 per cent compared to shipbuilding industry counterparts.

Mr Lockhart said it was illogical to argue for parity with an 18 per cent pay rise secured last November by workers at Osborne shipyard neighbour ASC, because it had “a completely different workforce with a different skill set” and this had been “based on a South Australia and West Australia parity claim”.

Mr Lockhart said BAE continued to negotiate in good faith, respected workers’ right to protected action and was managing the schedule and work commitments to prevent project delays.

Originally published as BAE Systems Australia chief executive Craig Lockhart hits back at union over shipyard strike