< Back to News Archive

posted on:

AGL to shut down Loy Yang in union dispute


Source: Financial Review

AGL Energy said it will lock workers out from its Loy Yang A power station and shut its operations down from May 15 after failing to resolve an enterprise bargaining dispute which has dragged on for more than two years.

The closure of the black-coal power station and mine - which follows on from the de-commissioning of the nearby Hazelwood power station in March - has raised concerns there could be potential power shortages across the National Electricity Market.

AGL's Loy Yang power station powers about 30 per cent of Victoria's power needs - or about 2 million homes - each year.

AGL Energy said the planned lock-out - which it says is valid under the Fair Work Act - was only taken after it received notice from the Electrical Trades Union of rolling consecutive stoppages which would start in two weeks.

"The proposed industrial action would compromise the safe operations of the plant and would ultimately put Victoria's power generation at risk," AGL Loy Yang general manager Steve Rieniets said in a statement.

"AGL will today inform workers at Loy Yang A power station and mine of its intention to lock out workers from the site commencing Monday May 15. We have no other option to resolve the bargaining dispute other than implementing this lock out."

Mr Rieniets said the company had no other option but to shut down the power station and the mine at the same time.

It is unclear how long the Loy Yang power station and mine will remain closed from mid-May.

Read more HERE