Workers cut output at a second power station
The Loy Yang B coal power station has been generating 20 per cent less than full capacity between 7am and 7pm since early last month, said Trevor Rowe, a spokesman for GDF Suez, the company that owns Loy Yang B.
However, the industrial action at Loy Yang B and Yallourn power stations was not affecting electricity supplies, an Australian Energy Market Operator spokeswoman said.
Mr Rowe said: "Unions are continuing to impose bans limiting electricity generation at Loy Yang B power station, despite delaying talks on a new enterprise agreement that would deliver annual pay increases of 5 per cent, as well as increased annual leave and improved superannuation benefits."
Union members started reducing generation at Loy Yang by 20 per cent for four hours a day in January, then increased it to 12 hours a day early last month.
Mr Rowe said the existing enterprise bargaining agreement expired in September last year. Negotiations for a new agreement had begun in July.
"The company hopes to reach an agreement as soon as possible and has sought assistance from the Fair Work Commission several times to help resolve the dispute," he said.
The Construction, Forestry, Mining and Energy Union spokesman Greg Hardy was in negotiations at Yallourn on Tuesday and could not be reached for comment.
Meanwhile, the owner of Yallourn power station, EnergyAustralia, has applied to the Supreme Court of Victoria for orders restraining its staff from reducing output.
Justice Elizabeth Hollingworth is expected to deliver her decision on Wednesday afternoon.
Union members have been using a manual override to reduce output at four Yallourn generators between 4pm and 6pm every afternoon since March 1, cutting output by up to 38 per cent. The action was also a protest against enterprise agreement negotiations. The Fair Work Commission deems both protected action.
The industrial action has coincided with a 10-day heatwave that has left Victorians sweltering.
Frequently Asked Questions about this Article…
Generation at Loy Yang B has been cut because union members are imposing bans as part of an industrial dispute with the station's owner, GDF Suez. The action has limited output by about 20% during the affected hours.
Loy Yang B has been generating about 20% less than full capacity between 7am and 7pm for 12 hours a day. The action began as a 20% cut for four hours a day in January and was increased to 12 hours a day early last month.
Union members at Yallourn have been using a manual override to reduce output at four generators between 4pm and 6pm every afternoon since March 1, cutting output by up to 38% as a protest linked to enterprise agreement negotiations.
According to a spokeswoman for the Australian Energy Market Operator, the industrial action at Loy Yang B and Yallourn was not affecting electricity supplies.
GDF Suez said talks include a proposal for annual pay increases of 5%, plus increased annual leave and improved superannuation benefits. The existing enterprise bargaining agreement expired in September and negotiations began in July.
GDF Suez has sought assistance from the Fair Work Commission several times to resolve the dispute. EnergyAustralia, the owner of Yallourn, applied to the Supreme Court of Victoria for orders restraining staff from reducing output; Justice Elizabeth Hollingworth was expected to deliver a decision on Wednesday afternoon.
The main parties are the power station owners (GDF Suez at Loy Yang B and EnergyAustralia at Yallourn), union members represented by the Construction, Forestry, Mining and Energy Union (CFMEU), the Fair Work Commission, and the Australian Energy Market Operator.
Yes — the industrial action has occurred alongside a 10‑day heatwave that left Victorians sweltering, a contextual detail noted in reports of the disputes. Investors may want to monitor company statements, court outcomes and any market notices for further developments.

