AGL required to support laid-off workers following ‘landmark’ ruling

Late last week (20 November), the Fair Work Commission made a community of interest determination prescribing that AGL support power plant workers who are facing job losses with the closure of its power stations in 2028.

Following an application put forward by the Net Zero Economy Authority (NZEA), Fair Work Commission deputy president Tony Saunders made a community of interest determination that AGL Energy and AGL Torrens Island provide support to 106 transitioning employees at its Torrens Island B power plant in South Australia, as it plans to close three of four generating units in Torrens on 30 June 2028, with the fourth set to close in June 2026.

AGL did not oppose the application made, the FWC noted.

NZEA mandates

The determination requires AGL to provide more support to these workers in line with NZEA mandates to protect worker interests amid the net zero energy transition.

This community of interest determination will require that AGL support transition employees in finding alternate employment, Saunders said.

“It will promote such action being implemented and offered to transition employees at an early stage, reinforcing the likelihood that transition employees will be supported to successfully transition to new employment,” he said.

These obligations include providing support through retraining, counselling, financial advice, and a pool redeployment process, which will give these workers opportunities to find alternative employment.

Multiple factors weighed in support of NZEA’s application, including the size of the electricity, gas, water, and waste service sectors, which make up only 1 per cent of the Adelaide employment market.

Saunders found that a significant proportion of these transition employees (37 per cent) possess highly specialised skills specific to the equipment at the Torrens Island B power plant.

‘No one left behind’

The president of the Australian Council of Trade Unions (ACTU), Michele O’Neil, said the determination shows the role that employers have to play to ensure that “no one gets left behind in the net zero energy transition”.

“We look forward to seeing unions on site, led by the ASU, negotiate a strong agreement with AGL outlining the exact supports required by the Torrens Island workers in the remaining time before the plant’s closure in mid-2028,” O’Neil said.

“Before today, AGL’s support was completely inadequate,” Scott Cowen, assistant national secretary at the Australian Services Union (ASU), said. Cowen added that this landmark case is a “major development” to secure a “just transition” for the workers at Torrens Island Power Station.

“This is what active industry policy looks like. The NZEA is acting as a critical circuit breaker, forcing a company that has benefited from privatisation to provide for its workforce,” he said.

“The ASU will work constructively with AGL to ensure all workers seeking to transition are given the support and opportunities they deserve.”

The case: Application by the Commonwealth of Australia as Represented by the Net Zero Economy Authority against AGL Energy Ltd and AGL Torrens Island Pty Ltd (NZ2025/1).