The Maritime Union of Australia (MUA) has rejected a formal offer by Total Marine Services (TMS) and has vowed to continue strike action against the company's operations.
TMS' 29 percent pay increase plus allowances was rejected, as the MUA has been demanding a 30 percent wage increase as well as daily allowances. In essence, the union is aiming to equalise the wages of offshore construction workers and riggers.
Besides the 29 percent wage increase, TMS offered to increase workers' construction allowances, starting from US$157.95 a day before increasing it to US$193.15 a day.
The MUA had initially demanded a US$450 a day allowance but later agreed to an allowance of US$180.50 a day.
"When an official offer last Thursday (January 21) failed to honour what had been agreed in meetings leading up to the offer, we had no option but to extend protected industrial action," said MUA Assistant National Secretary Warren Smith.
TMS CEO Glenn Triggs said that the company had already incurred an excess of US$1 million in losses.
The MUA has announced further strike action including a 48-hour strike and a 96-hour strike.
"Today we have given notice of a further 48 hours commencing midnight Sunday February 1 to midnight Tuesday February 2," said the MUA.
Mr Triggs said that if the MUA launched a 96-hour strike, it would have a "significant financial impact" on the company.
The Australian Mines and Metals Association (AMMA) which has been involved in the negotiations, said that it was disappointed to "see the archaic leadership of the MUA choose to remain out of touch," reported The Australian newspaper on January 25.
The AMMA also criticised the union as being "fixated on the class warfare battles of the past."
"They continue to display a dinosaur mentality which has no place in modern Australian work places."
Australian Workplace Relations Minister Julia Gillard has refused to intervene, reiterating that the government wanted the parties to come to a resolution on their own.
"Under the Fair Work Act, there are a number of steps either party can take to help facilitate an outcome, including seeking the assistance of Fair Work Australia to mediate or to make recommendations to resolve the dispute," the paper quoted a government spokeswoman as saying.
