Union warns of power threat as industrial action looms

The Mining and Energy Union has warned of potential power disruptions as it turns to industrial action over job security issues for Queensland power station workers. It said today it would apply to the Fair Work Commission to take protected industrial action after Kogan Creek negotiations dragged on with CS Energy, with no direction from the State Government on the impact of the Queensland Energy Workers’ Charter on enterprise bargaining. Members at the Kogan plant, near Chinchilla, wanted guarantees they would not be replaced by contractors and a fair distribution of attraction and retention provisions in the enterprise agreement, the union said. MEU Queensland district vice-president Shane Brunker said the situation had the capacity to escalate quickly and affect power generation across Queensland. “CS Energy need direction from government at the negotiating table to finish these negotiations otherwise there will be dire consequences for energy security running into the peak period of summer power generation in this state," he said. “This round of EA negotiations are critical to the largest union membership in Queensland generation given the challenges ahead with the transformation of our industry and we have to get it right today. “We start negotiations with CS Energy for the Callide replacement EA in September and Tarong in January 2024, so our membership across the State are aware this EA and future agreements are the precedent for the industry and the future for their industry and communities. “The MEU will not stand by and let the state-owned assets become another victim of precarious employment and contracted-out work which is to the detriment of young Queenslanders and regional communities’ future. “Either the Queensland Energy Workers’ Charter means something or it doesn’t and if it’s not worth the paper it’s written on then at least tell us so we can take appropriate industrial action." 'Generous terms and condition' - CS Energy In a written statement on the issue, CS Energy said it had been negotiating in good faith to establish a new enterprise agreement for the Kogan Creek Power Station. "We are committed to completing negotiations as quickly as possible to give employees certainty about their future pay and working conditions," the company said. "CS Energy, unions and employee representatives have met regularly over the past six months. and reached a consensus on many items covered by the agreement. Unfortunately, there are some issues that we have not been able to resolve. "CS Energy has made an offer that will provide employees with generous terms and conditions. "We respect the rights of union members to take protected industrial action, but hopefully it doesn’t need to come to that." The company assured Queenslanders that planning was underway should protected action occur to minimise any impact on the operation of the power station. Potential for widespread disruptions - MEU The MEU warned that industrial action would compound the current critical shortage of energy security due to shutdown work at several of the units at Callide Power station and at other plants. This may lead to widespread power disruptions in Queensland, as the Kogan power station near Chinchilla supplied 10 per cent of Queensland’s power and much of northern NSW, it said. It came as the Australian Energy Market Operator this week released its 2023 Electricity Statement of Opportunities (ESOO) report. AEMO chief executive Daniel Westerman said it was critical that planned investments in transmission, generation and storage projects were urgently delivered to ensure Australian consumers continued to have access to reliable electricity supplies. Compared to last summer, about 3.4 GW of new generation and storage capacity is expected to be available this summer, which is forecast to be hotter than previous years. “We’re expecting an elevated level of risk compared to recent years, mostly due to hotter and drier conditions, and coal-fired generation reliability is at historic lows,” Mr Westerman said. “The entire industry is focused on managing the risks in the summer ahead, particularly during high-demand periods coupled with generation outages and low renewable output, but some risk will remain." Energy Minister Mick de Brenni has moved to quell concerns on the State's energy security, saying that Queensland’s power system remained robust and was positioned well for the upcoming summer period. "The advice for Queensland that electricity supply exceeds forecast demand for the summer ahead has not changed," he said. "Queensland will inject more than 700MW of new renewables before Christmas, and we continue to track on schedule towards return to service of the Callide power station from early 2024. "There will be more storage and generation coming, including when the largest onshore wind farm in the southern hemisphere - the 1000MW McIntyre wind farm becomes operational next year."

Union warns of power threat as industrial action looms

Industry Queensland

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