Union dispute puts Victoria’s electricity supply at risk

• 7 years ago (2016-12-15)
• David Flin

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The Australian energy firm AGL has said that, due to a union dispute with the Construction, Forestry, Mining, and Energy (CFME) union at the Loy Yang coal-fired power station, it will lock out the entire workforce over the Christmas holidays. The lockout at the 2000 MW Loy Yang plant, the largest power plant in Victoria, will result in an indefinite shutdown. Loy Yang provides over half of Victoria’s capacity.

AGL said that the lockout is scheduled to start on December 28, the announcement being made after CFME officials had notified the company of a planned 24 hour strike that day.

The Victorian government has stepped in to terminate the actions by both sides. Natalie Hutchins, Industrial Relations Minister, has launched an application to stop the action to the Fair Work Commission. She said: “This will force both parties to get back to the table, and the Fair Work Commission is the appropriate place for this to occur.”

AGL and the CFME have been in dispute over pay and conditions at the site for the past 15 months. The biggest area of dispute between the two has been the management’s intention to reduce minimum staffing levels.