ACTU boss backs Wambo workers amid pay stoush lockout

The Australian Council of Trade Unions (ACTU) has backed workers from a Hunter coal washery who have been locked out by their employer in the middle of an enterprise agreement stoush.

Peabody Energy locked out workers at the United Wambo Washery last week, escalating an enterprise agreement dispute that has been ongoing since early May.

Workers had been taking protected industrial action after overwhelmingly rejecting the company's latest offer, which included annual wage increases of just 2.5 per cent, but also cuts to bonus arrangements.

Nineteen workers have now been stood down without pay for two weeks until July 1.

ACTU president Michele O'Neil visited the stood down workers on Monday afternoon. She called for changes to Australia's industrial relations laws that allowed employers to lock out workers during protected industrial action.

Ms O'Neil described the actions of Peabody as a "disproportionate and harsh treatment of a group of workers by a huge American multinational company".

"This is an issue that affects every worker," she said.

"They have locked them out for two weeks, which leaves those workers without income.

"All they have been trying to do is negotiate a fair agreement."

Ms O'Neil said the employer had been putting offers on the table that would effectively lead to workers "moving backwards" in real terms.

"Inflation is above 4 per cent and the formal offer that was rejected was 2.5 per cent," she said.

"That means they are not keeping up with the costs of life."

The union boss called for Peabody to return to the negotiating table in good faith.

"Unions are calling on Peabody Energy to return to the negotiating table and finalise a fair agreement with United Wambo Washery workers," she said.

"Locking workers out of their jobs and cutting off their income is an unfair and unreasonable escalation that will just prolong this dispute.

"Peabody Energy is placing unnecessary financial strain on its workers, which will ripple through families across the Hunter Valley.

"It is a pretty punishing and cruel way of treating their hardworking employees," she said.

"Using lockouts this way is really disproportionate because workers have spent many many months trying to get a fair deal.

"We all know disputes like this don't get solved by heavy handed treatment. You get a resolution by listening and sitting and negotiating fairly."

Ms O'Neil called for a change to the way employers were able to apply lockouts.

"It shouldn't be the case, that companies can use lockouts in this way," she said.

"They are using it harshly, and its disproportionate to the action that the workers have taken.

"We want to see a change where this weapon isn't available to them."

Mining and Energy Union Northern Mining and NSW Energy District President Robin Williams said they wanted these lockout laws removed.

"It's fairly harsh in the circumstances," he said.

He said that representatives met on Thursday, June 18, but said there was still no resolution to the dispute.

"They are hoping this will soften their resolve," he said.

"I know this group of employees, they are a good bunch of people. Their resolve will harden."

Mr Williams said the employees had been with the company for a long time and had been good workers.

"I was personally quite surprised when the company took such harsh action," he said.

"This impacts not only the workers, but their entire families.

In a statement provided to the Herald last week, Peabody said the company had notified employees of a two-week lockout in response to ongoing protected industrial action by members of the Mining and Energy Union under the Fair Work Act.

This followed an extended period of enterprise agreement negotiations, including multiple formal bargaining meetings, which were yet to result in a mutually acceptable outcome.

"Over a period of seven weeks, the site has experienced ongoing protected industrial action, including work stoppages and partial work bans. The lockout applies to employees participating in this industrial action," a spokesman said.

He said the company's latest offer would continue to put employees among the highest paid in the region.

"Peabody remains committed to reaching a resolution that supports employees and enables a safe, stable and productive operation," the spokesman said.

"Despite the employee action, the plant continues to meet its contractual requirements."