A potentially damaging strike has been averted at BlueScope Steel after the majority of union members voted to return to work yesterday and agreed to seek a deal through arbitration.
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After eight months negotiating a new enterprise agreement, the steelmaker and unions are yet to strike a final deal on when pay increases will occur each year.
Hundreds of Port Kembla steelworkers again packed out The Fraternity Club at Fairy Meadow yesterday.
Australian Workers' Union Port Kembla branch secretary Wayne Phillips said members voted to return to work at midday and call off further planned industrial action, in line with a recommendation from Fair Work Australia.
The industrial umpire had recommended last Friday that it arbitrate outstanding issues including the expiry date of new award and timing of pay increases, he said.
The unions want annual increases to be paid each February, as in past agreements, and for the award to expire in February 2015.
"It's never been hidden from the company that we wanted a three-year agreement from when this one expired," Mr Phillips said.
"I'll certainly advise the commission of what we've done to assist the company ... including our nine week postponement of the negotiations and the fact that our members have almost had two years without a pay increase."
BlueScope wants pay increases to take place each October. The company declined to comment.
Mr Phillips said unions would also seek a $600 one-off payment in arbitration, similar to a payment that had been made earlier this year to workers at BlueScope's Western Port facility in Victoria.
"The company has delayed and delayed and delayed this ... so I think we've got the right to argue for a bit of compensation as part of this arbitration as well," he said.
Mr Phillips said not all members were in favour of returning to work yesterday.
"A large proportion of the membership was obviously still keen to give the company a bit of a hiding and what really made it worse for us was the staff giving themselves a 3 per cent pay rise and then rubbing it in our face," Mr Phillips said.
He hoped the arbitration would begin in the next fortnight.