Advertisement

Peabody Energy defends Wambo lockout, says wage offer remains on the table

June 24, 2026 5:45 am in by
Image: Supplied (MEU)

Peabody Energy has defended its decision to lock out workers at the United Wambo Coal Handling Preparation Plant, saying the move was a lawful and necessary step after more than seven weeks of repeated industrial disruptions.

The statement comes after ACTU President Michele O’Neil visited locked out workers at the Hunter Valley site and called on Peabody to return to the bargaining table. Nineteen workers have been without pay since the two-week lockout was imposed under the Fair Work Act.

Peabody said it had participated in 15 formal bargaining meetings with the Mining and Energy Union and that its offer remained on the table. The company’s proposed package includes a 13 per cent wage increase over four years, with annual bonus arrangements left unchanged.

Article continues after this ad
Advertisement

“Wambo employees would remain among the highest paid in the region with this offer,” said a Peabody spokesperson.

Peabody said the site had experienced more than seven weeks of repeated disruptions, including work stoppages and partial shifts, before the lockout was implemented. The company said the decision was not taken lightly and was intended to help resolve the dispute in a structured way.

“Peabody is operating in accordance with Australian law and in good faith throughout this process,” the spokesperson said.

The Mining and Energy Union had previously rejected Peabody’s earlier offer of 2.5 per cent annual wage increases, which the ACTU described as an attempt to drive down pay and conditions.

Peabody said negotiations would continue during the lockout period and that the plant was continuing to meet its contractual requirements despite the dispute.

Article continues after this ad
Advertisement

Advertisement