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Update: Loy Yang A Industrial action cancelled

The Fair Work Commission (FWC) today ruled to terminate proposed industrial action at Loy Yang A power station and associated mine.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) had voted to take strike action due to a dispute with AGL over pay and conditions for its members.

AGL determined that the mine and power station couldn’t be operated safely if the strike went ahead and notified the union it would conduct a lock out.

The market operator (AEMO) was informed of AGL’s decision and determined that the loss of the power station and mine would present difficulties for the market. AEMO is concerned a reduction in generation could result in a period of involuntary load shedding.

The Victorian Government made a submission to the FWC to have the industrial action overturned. FWC found it likely that the lockout would be necessary, and the power station and mine shutdown would have a severe economic impact and could put health at risk. It ordered both the union and AGL to terminate industrial action.

The market reacted with prices reducing in Victoria. Other regions are also generally trading lower.

There is still no solution to the two-year standoff between AGL and the union, however the immediate crisis has been averted.

FWC order can be found on its website:

You can read our previous news on this action here