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AGL to shut down Loy Yang power plant in Victoria over union action

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Energy producer and retailer AGL Energy says it will lock out the entire workforce and shut down its Loy Yang power plant in Victoria after union workers threatened rolling strikes.

Loy Yang, which accounts for about a third of the state’s power capacity, would be shut down from Monday, May 15.

AGL Energy says it will lock out the entire workforce on May 15. AGL Energy says it will lock out the entire workforce on May 15. Photo: Paul Jones

“As a consequence of the proposed action, AGL Loy Yang will not be able to continue operations. This will require both the Loy Yang A power station and the mine be shut down,” AGL Loy Yang General Manager Steve Rieniets said.

Mr Rieniets said the plant received notice on Wednesday from the Electrical Trades Union of “consecutive stoppages” from 12am on May 15.

“The proposed industrial action would compromise the safe operations of the plant and would ultimately put Victoria’s power generation at risk,” he said.

“We have no other option to resolve the bargaining dispute other than implementing this lock out. We need to lock out the entire site simultaneously with the industrial action, this will allow us to shut down the station in a systematic way to protect equipment from being damaged.”

AGL has been negotiating a new pay agreement with the unions at Loy Yang for more than 18 months, but in January the Fair Work Commission agreed to end the current pay deal by January 30.

More to come.

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