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Peabody locks out United Wambo Washery workers amid ongoing pay dispute

June 17, 2026 8:29 am in by
Image: Supplied (MEU)

Peabody Energy has commenced a two-week lockout of workers at the United Wambo Washery, escalating an enterprise agreement dispute that has been ongoing since early May.

Workers had been taking protected industrial action after rejecting a company offer that included annual wage increases of 2.5 per cent and cuts to bonus arrangements. The Mining and Energy Union says the offer falls short of outcomes being achieved elsewhere in the coal industry.

Mining and Energy Union Northern Mining and NSW Energy District President Robin Williams described the lockout as an extraordinary response, saying the two parties had been close to reaching an agreement.

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“There’s very little between the parties and this dispute could have been settled weeks ago. Instead, Peabody has chosen to lock out its own workforce for two weeks,” he said.

“Instead of reaching an agreement, they’ve chosen to shut workers out of their workplace and put additional pressure on local families.”

The union says its members remain willing to negotiate.

“Our members remain united and ready to reach a fair agreement. The question is whether Peabody is,” Mr Williams said.

Peabody meanwhile have issued a statement saying the lockout was a response to seven weeks of protected industrial action by union members under the Fair Work Act, including work stoppages and partial work bans. A Peabody spokesperson said multiple formal bargaining meetings had been held but had not yet produced a mutually acceptable outcome.

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“The company’s latest offer will continue to place employees among the highest paid in the region,” a Peabody spokesperson said, adding that the plant was continuing to meet its contractual requirements despite the dispute.

Both parties say they are committed to achieving a resolution to the dispuite.

The lockout is expected to remain in place for two weeks.

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