19 March 2025

BAE Systems’ naval shipbuilding workforce walks off job amid pay dispute

| Andrew McLaughlin
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Osborne shipyard

The Osborne shipyard in Adelaide. Photo: SA Govt.

More than 500 workers at BAE Systems’ Osborne shipyard in Adelaide walked off the job on Monday (17 March) in the latest in a series of stoppages, as an ongoing pay dispute escalates.

More than 400 members of the Australian Manufacturing Workers’ Union (AMWU) and about 100 members of the Australian Workers’ Union (AWU) and the Electrical Trades Union (ETU) walked off the job at 10 am on Monday morning during an all-hands meeting hosted by BAE Systems Maritime Australia Acting Manager Director Paul Berryman.

The workers have been in negotiations with BAE Systems since last July and are seeking a 30 per cent pay increase over the next three years to bring them into line with comparable industry rates, but BAE Systems has offered 12 per cent.

The Australian Manufacturing Workers Union (AMWU) says BAE workers are paid, on average 20 per cent less than other workers with the same skills in the shipbuilding industry.

The workers are currently building the first of six Hunter-class frigates for the Royal Australian Navy, are participating in the Arafura-class offshore patrol vessel program, are gearing up for a major upgrade to Australia’s three Hobart-class destroyers, and will participate in the build of Australia’s future nuclear-powered AUKUS-SSN submarines.

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AMWU SA Acting State Secretary Stuart Gordon said the workers at BAE were angry that they were paid on average 20 per cent less than other workers with the same skills in the same industry.

“We are the highly skilled tradespeople who are building the next generation of ships for the Australian Defence Force,” he said.

“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,” he added. “Same job, same pay – that’s why we’re out, and that’s what will resolve it.”

In a statement, a BAE Systems Australia spokesman said the company “is negotiating an enterprise agreement that seeks to ensure improvements to wages and longer term job security for our employees”.

“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.”

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