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ASC, BAE Systems workers drop tools over wages and conditions disputes

Workers at ASC sustain Australia’s Collins Class submarines in South Australia and Western Australia. ASC is also the sovereign submarine partner to sustain and jointly build nuclear-powered submarines in Australia. Photo: Russell Millard

Around 350 workers from ASC and more than 100 workers from BAE Systems are dropping tools over ongoing wage and conditions disputes.

Around 350 workers from ASC and more than 100 workers from BAE Systems are dropping tools over ongoing wage and conditions disputes.

Close to 500 South Australian manufacturing workers at two of the country’s largest defence manufacturing companies committed to rally outside the Department of Premier and Cabinet in Adelaide this week, according to a union statement published on 19 September.

Both groups are planning to draw the attention of both state and federal governments over separate protracted wage disputes.

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Stuart Gordon, Australian Manufacturing Workers’ Union - South Australia assistant state secretary, said both defence companies are keeping workers on low wages despite increasing cost-of-living challenges experienced by both workforces.

“These workers experience an average of 1.5 per cent wage increase capped each year. The current consumer price index for Adelaide for June 2024 is 4.5 per cent.

“These massive defence companies are out-of-touch with the average Australian. To insist on placing wage increase caps so that wages do not keep pace with cost-of-living increases is really starting to bite on these workers,” Gordon said.

“We’re hoping all state and federal government politicians come out to support South Australian workers today.”

BAE workers have been in negotiations since March this year, with workers commencing protected industrial action last week.

ASC workers have been in negotiations since November 2023 with ASC workers undertaking ongoing protected industrial action since March.

“Both BAE and ASC workers are calling for support to fix issues of the past when it comes to stagnant wage growth,” Gordon said.

BAE workers have a significant global role in the advanced manufacturing of missile capability and internal structures of warplanes and warships.

ASC maintenance workers have a critical role in the maintenance of Australia’s defence submarines, as they are the only workers able to perform a full-cycle docking which is vital to extending the life of the Collins Class submarines.

The workers have been pushing for pay parity with their Western Australian counterparts.

“For ASC workers, it’s insulting to be paid 18.5 per cent less to do the same work as other ASC workers,” Gordon said.

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