Over three hundred workers across four Forgacs sites in the Lower Hunter Valley region of NSW have stopped work after negotiations for a collective agreement broke down.

As a result of protected industrial action on Tuesday and Wednesday, the ship building company has agreed to return to the bargaining table after refusing to meet with workers since April 29 this year.

AMWU Industrial Officer, Don Sutherland, says the work stoppages have been highly successful, with many workers joining the union on the day in order to take part in the mass meeting and subsequent industrial action.

“The 48 hour stoppage started with a mass meeting at 9am on Tuesday, which carried resolutions urging the company to return to the bargaining table with an improved offer, and endorsing further industrial action in the form of overtime bans.

“The members also voted in favour of further 24 hour stoppages if necessary, and then marched on the corporate offices of Forgacs in Newcastle to express their determination to achieve an improved outcome”, he said.

Union members at Forgacs are asking for apprentice wages to be made relative to the tradesperson’s wage under the agreement, rather than to the award rate.

“Apprentices are supposed to receive a proper relativity and that relativity should be paid against the tradesperson’s rate in the agreement, but the company is paying the relativity against the award rate which means they’re considerably underpaid”, said Sutherland.

 In addition, the union is seeking improved arrangements for skills recognition and classification, income protection and an improved wages package.

The members are asking for pay increases of 8% in the first year, followed by 6% in the following two years, which would bring workers’ pay up to the average wage around the Newcastle region.

The company is offering a 6% increase in the first year of the agreement, followed by 4% in the following two years.

“The company can afford the claims, especially given the steady recovery in the economy and a number of defence contracts which are underway”, said Sutherland.

“Given the stalemate of the negotiations, the members voted in a protected action ballot overwhelmingly in favour of pursuing protected action to support their negotiations.”