Workers at the Osborne Naval Shipyard in Adelaide, Australia, have been on strike for more than a month as wage negotiations have not been resolved for eight months. The strike comes at a critical time when the multinational defense company BAE Systems is preparing to fully launch Australia’s new Hunter-class frigates and other major projects. BAE Systems is leasing the shipyard’s facilities to build six Hunter-class frigates.
According to the Australian Manufacturing Workers’ Union (AMWU), more than 500 union members carried out a collective demonstration action at an all-staff meeting held at BAE Systems Australia last week.
During the past month, a strike has been underway by workers at the shipyard. Negotiations on pay rises and other issues reportedly began in July 2024.The AMWU said they were demanding an average 30% pay rise over three years to bring pay “in line with industry levels”. BAE Systems Australia is currently offering workers only a 12% pay rise over three years.
An AMWU spokesman said: “BAE workers are right to be angry as they are paid on average 20 per cent less than other workers in the same industry and with the same skills.”
A BAE spokeswoman confirmed to local Australian media that the company is “negotiating a corporate agreement aimed at securing higher pay and longer-term job security for our employees.”
The dispute comes at a critical time for the shipyard, which is currently expanding its staff as it prepares to move from testing modules to full-scale construction of the first Hunter-class frigate. In 2018, the Australian government selected BAE Systems to build nine Hunter-class frigates, before dropping to six, and construction is now four years behind schedule, with the first frigate expected to be delivered as soon as 2032, and full construction completed around 2040.
In addition to the Hunter-class frigate project, the union emphasized that as part of the Defense Capability Enhancement Program, workers will begin maintenance and upgrading of the Hobart-class destroyers in the middle of this year as well as the Offshore Patrol Vessel ( OPV) program.
A union spokesman said, “We are the highly skilled tradespeople who are building the next generation of ships for the Australia Defence Force. BAE won’t accept low quality ships, so why should we accept low wages?”