Union warns Labor: smelter before sharks

By the Editorial Team · Thursday, June 25, 2026

The head of the Australian Workers’ Union in NSW has called on both state and federal Labor governments to prioritize funding the Tomago aluminium smelter over other budget items, warning of political action if no deal is reached by early July. This funding is crucial to maintain the smelter’s operations and preserve manufacturing jobs, especially as long-term electricity agreements and substantial subsidies will be needed to keep it viable beyond 2028.

The head of the Australian Workers’ Union (AWU) in New South Wales has urged the Labor governments at both state and federal levels to prioritize securing funding for the Tomago aluminium smelter over other budget allocations, including a national gun buyback scheme, shark mitigation efforts, and election promises.

Tony Callinan, AWU NSW secretary, emphasized that the smelter—a key employer and contributor to national manufacturing capability—should receive urgent financial support. He set a deadline for the Albanese and Minns governments to reach a funding agreement before the NSW Labor Party conference scheduled for July 4 and 5. If no deal is finalized by then, Callinan warned the union would leverage all available political influence to ensure the smelter remains operational.

NSW Treasurer Daniel Mookhey outlined on Tuesday that state funding to keep Tomago running would be drawn from a $1.1 billion appropriation fund, which also covers costs associated with a gun buyback program—estimated to require at least $500 million in compensation—and shark mitigation technologies. The fund is additionally earmarked for election commitments ahead of the state election in March, further limiting resources allocated to the smelter’s future.

Callinan criticized this distribution of funds, stating that prioritizing gun buybacks and election promises over maintaining the smelter was misguided. He underscored the strategic importance of the facility, pointing to its role in sustaining manufacturing jobs and national economic sovereignty. “Tomago should be a clear stand out priority for the Labor government,” he said, expressing concern over the absence of a funding deal more than six months after Prime Minister Anthony Albanese pledged support for the smelter during a visit there.

Responding, Mookhey confirmed the state would contribute financially to keeping Tomago operational, though he noted the federal government had made the firm commitment to save the plant. He suggested funding arrangements were still under negotiation between the commonwealth and the smelter’s private owners and acknowledged that Canberra possessed greater financial capacity for the project.

Addressing reports that the smelter would require an annual subsidy exceeding $300 million beyond 2028, Mookhey indicated the state budget could be adjusted if necessary once an agreement is reached.

Separately, a spokesperson for Federal Industry Minister Tim Ayres questioned the impact of short-term funding from NSW. They highlighted a federal partnership running from 2029 to 2039 intended to provide Tomago with long-term, fixed-price electricity by accelerating renewable energy generation and storage projects across New South Wales. The smelter currently consumes more than 10 percent of the state’s electricity, making affordable power supply critical to its viability beyond the expiration of current arrangements in 2028.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.