Defence workers walk out over shipbuilding wages

More than 500 defence workers are taking part in a massive walk-out over wages, according to the Australian Manufacturing Workers’ Union (AMWU).

Editor’s note: This story first appeared on HR Leader’s sister brand, Defence Connect.

More than 400 workers from the AMWU and around 100 workers from the Australian Workers’ Union (AWU) and the Electrical Trades Union (ETU) are today (Monday, 17 March) taking industrial action as BAE Systems Australia’s leadership team addresses its maritime workforce in response to a dispute over workers’ wages.

Workers at BAE Osborne are seeking a 30 per cent wage increase on average over three years to keep them in line with industry rates.

“BAE Systems Australia is negotiating an enterprise agreement that seeks to ensure improvements to wages and longer-term job security for our employees,” according to a BAE Systems Australia spokesperson.

“We continue to negotiate in good faith with the aim of achieving an outcome that balances reward and sustainability to ensure value for money to the Commonwealth and taxpayer.

“We will provide a further update when appropriate.”

An all-hands meeting hosted by BAE Systems Maritime Australia acting manager director Paul Berryman will be held to attempt to resolve the dispute.

“Workers at BAE are rightly angry that they are paid on average 20 per cent less than other workers with the same skills in the same industry,” according to AMWU SA acting state secretary Stuart Gordon.

“We are the highly skilled tradespeople who are building the next generation of ships for the Australia Defence Force.”

“We are taking a stand because BAE isn’t recognising the value of our skills and our work. BAE wouldn’t accept lower-quality ships, so why should we accept lower wages.”

“The future of the industry is built on attracting and retaining our skills and experience. Same job, same pay – that’s why we’re out, and that’s what will resolve it.”

AMWU members have been tasked with the critical Hunter Class Frigate Program that will provide continuous naval shipbuilding capability for the country and will complement future AUKUS work with its anti-submarine capability.

It comes at a critical juncture as the program commences with the construction of the first of the Hunter Class Frigates and as BAE Systems Australia bolsters its workforce to support the program.

Workers will commence maintenance and upgrades mid-year on the Hobart-Class Destroyers as part of the Defence Capability Enhancement Program. The workforce also conducts work on offshore patrol vessels (OPVs).

Currently, BAE workers are paid, on average, 20 per cent less than other workers with the same skills in the shipbuilding industry, according to the AMWU. BAE Systems Australia is currently offering workers a 12 per cent wage increase over three years.

The blue-collar workers have been undertaking stoppages in the last month, having been in negotiations with the multinational company since July 2024.