Workers at BAE’s Osborne Naval Shipyard Australia Walkout in Wage Dispute
Unions representing more than 500 workers at the Osborne Naval Shipyard in Adelaide, Australia began an industrial action as contract negotiations over wages stretched into an eighth month with no resolution in sight. The walkout comes at a critical time as the BAE Systems’ yard is preparing to move into full production of Australia’s new Hunter Class frigates as well as other major projects scheduled for 2025.
The Australian Manufacturing Workers’ Union (AMWU) reports that over 400 of its members walked out to demonstrate their frustration on Monday, March 17 during an all-hands meeting hosted by BAE Systems Maritime Australia Acting Manager Director Paul Berryman. They were joined by around 100 workers from the Australian Workers’ Union (AWU) and the Electrical Trades Union (ETU).
A BAE spokesperson confirmed to the local media in Australia that the company is “negotiating an Enterprise Agreement that seeks to ensure improvements to wages and longer-term job security for our employees.”
The blue-collar workers at the shipyard have been undertaking stoppages during the last month. Negotiations for wage increases and other issues reportedly started in July 2024. AMWU says it is seeking a 30 percent wage increase on average over three years to “keep them in line with industry rates.” It reports that BAE Systems Australia is currently offering workers a 12 percent wage increase over three years.
“Workers at BAE are rightly angry that they are paid on average 20 percent less than other workers with the same skills in the same industry,” said AMWU SA Acting State Secretary Stuart Gordon.
The dispute comes at a critical time for the shipyard which is currently staffing up as it prepares to move from test modules to the full construction of the first of three Hunter Class frigates and a total of six in the program. In 2018, the Australian Government selected BAE Systems to deliver the Hunter program for the Royal Australian Navy.
The shipyard recently highlighted that it had added 47 apprentices joining the Hunter Class Frigate Program at the Osborne Naval Shipyard in Adelaide. It said it was part of its largest-ever intake of apprentices in the state.
“The future of the industry is built on attracting and retaining our skills and experience,” said Gordon. “We are the highly skilled tradespeople who are building the next generation of ships for the Australia Defence Force.”
In addition to the Hunter program, the union highlights the yard will also commence maintenance and upgrades mid-year on the Hobart-Class destroyers as part of the Defence Capability Enhancement Program. The workforce will also conduct work on Offshore Patrol Vessels (OPVs).
BAE reports that it will continue to ramp up recruitment for the Hunter program with 400 new trades roles to be offered in 2025. Further, it says an additional 600 new roles will be offered across its maritime operations at Osborne.
The company reports it is continuing to negotiate in good faith. It said it would seek to hold the all-hands meeting in an effort to resolve the dispute.