Australian Submarines Maintenance Disrupted As Workers Strike For Higher Wages

Workers at ASC Ltd, Australia’s state-owned submarine constructor, have initiated a strike to seek greater wages, which might hamper submarine maintenance as the country prepares to build the AUKUS fleet.

Approximately 300 workers at ASC’s Osborne shipyard in South Australia began a series of strikes demanding higher wages, which could potentially impact the maintenance schedule for Australia’s submarines.

A union representative speaking with Reuters said the strikes began on Monday, with workers walking off the job for an hour.

Furthermore, a separate meeting of union members resolved to extend some strikes indefinitely.

The Osborne shipyard is crucial because, in collaboration with British business BAE Systems, ASC is expected to build Australia’s fleet of nuclear-powered submarines under the AUKUS accord signed in 2021 by Britain, the United States, and Australia.

However, until construction begins later this decade, the shipyard’s primary focus is on the extensive upkeep of the current fleet of Collins-class vessels, which are powered by diesel and electricity.

The workers’ primary demand is wage parity across all of ASC’s sites.

Osborne employees earn around 17% less than their counterparts in Western Australia.

Stuart Gordon, an assistant secretary for the Australian Manufacturing Workers Union, highlighted the disparity, saying, “The Navy does not pay its sailors less money if they work in South Australia, so why should it be the same for those who build the ships?”

The consequences of extended strike action could drastically delay the Collins-class submarines’ maintenance timetable.

Work on HMAS Rankin is scheduled to begin this month at the Osborne shipyard.

Similarly, Gordon says that HMAS Sheean, which is already in the dock, is nearing the end of a similar repair cycle.

In reaction to the strikes, ASC stated that unions had rejected repeated proposals offered over six months of discussions.

In addressing the matter, unions have maintained their demands despite invitations to include the industrial arbiter, the Fair Work Commission.

ASC CEO Stuart Whiley expressed his commitment to ongoing negotiations, saying they will continue to negotiate with the unions and workers in a sincere attempt to achieve a mutually beneficial solution.

However, a company spokeswoman did not provide Reuters with detailed data about ASC’s pay offer.

The Department of Defense is working with ASC to reduce the impact on submarine maintenance in response to the issue.

While a disturbance is expected, a representative for the centre-left Labor government confirmed that measures are being taken to manage the issue in the short term.

As tensions between workers and ASC remain high, the threat of long-term strikes looms over Australia’s submarine repair operations, highlighting the problematic balance between labor rights and national security imperatives.

Reference: Reuters

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Source: Maritime Shipping News