A Collins-class submarine undergoes sustainment work at Osborne in Adelaide. Photo: ASC.
Workers at ASC’s Osborne facility in South Australia have been granted an average 18 per cent wage increase as part of a new enterprise agreement with the Australian Manufacturing Workers’ Union (AMWU) and other unions.
The agreement comes six months after ASC’s Adelaide workforce commenced protected action against the submarine builder and sustainment provider over claims they are paid less than their Western Australia-based counterparts, despite the union claiming they perform higher skilled work and are responsible for training the WA-based workforce.
The reason for the pay disparity has been attributed to the company wanting to stop its WA workforce from being enticed to leave for higher paid jobs in the resource sector.
At the time, then AMWU assistant state secretary Stuart Gordon said the SA division of ASC fulfilled a vital role in Australia’s submarine capability, by performing work not done elsewhere in Australia.
“They are the only team able to carry out the Collins’ deep maintenance, or full-cycle docking, where the boat is completely stripped down and has its massive diesel engines and main motor removed and refurbished,” he said in May.
“The WA division of ASC only do the running maintenance of the boats and breakdowns.”
Coinciding with the start of protected action, the AMWU expressed no confidence in and called for the sacking of ASC CEO Stuart Whiley, claiming he had recently been given a 31 per cent wage increase.
In an 18 November post on LinkedIn, ASC said the EA would result in an 18.5 per cent pay increase for its South Australian workers, with 12 per cent of that increase allocated to pay equity with the WA workers, and the remaining six per cent to allow for roster change provisions which would provide ASC with greater workforce flexibility.
Future wage increases will be granted in parallel with those of the WA workforce.
Mr Whiley said the outcome was positive for both the company and the employees.
“We have always been committed to ensuring our employees are paid fair and equitable wages across our organisation and are pleased that we have been able to structure an enterprise agreement which is reflective of both market rates and ASC’s desire to drive productivity through our organisation,” he said.
In a statement about the agreement, Mr Gordon said South Australian workers were celebrating the resolution of the dispute, and they knew the value of their labour.
“The principle of same job, same pay rang true in our lunchrooms and on our picket lines,” he said. “By standing together in unity, union members and ASC have achieved a great outcome.
“This agreement will give ASC the ability to retain and attract the high-skilled workforce in Adelaide needed for Collins and future AUKUS work.”
Formerly known as the Australian Submarine Corporation, ASC built the Royal Australian Navy’s six Collins-class conventional submarines between 1990 and 2002, and today is the principal sustainment provider for the Collins boats.
From 2026 the company will embark on a major Life Of Type Extension (LOTE) program for the Collins boats which will see them receive new engines, cooling systems, and a comprehensive full assessment.
ASC was also named in March as the government’s preferred sustainment provider for the navy’s fleet of AUKUS-SSN nuclear-powered attack submarine from when they enter service in the early 2040s. The agreement with ASC and with shipbuilder BAE Systems was ratified earlier this month.
