Tunnel workers on the multi-billion-dollar Snowy 2.0 pumped hydro project have secured a significant pay and conditions victory, following a successful vote on a new enterprise agreement negotiated by the Australian Workers’ Union (AWU).

The agreement, which was recently approved by the Fair Work Commission, delivers an immediate 8.5 per cent pay rise for tunnel workers, with further increases of 2.25 per cent every six months over the next four years. The deal is expected to lift workers’ annual earnings by a minimum of $50,000, depending on their role and experience.

In addition to the substantial pay increases, the agreement introduces double-time pay for night shifts, enhanced travel allowances, better leave entitlements, and more favourable Fly In Fly Out (FIFO) arrangements.

The AWU credited the determination and unity of its members for achieving the outcome, particularly following a major walk-off in May, when more than 1000 workers downed tools in protest over pay and conditions.

“This win wouldn't have been possible without the dedication and strength of our Snowy delegates and members,” the union said.

Snowy 2.0, one of Australia’s largest renewable energy infrastructure projects, is designed to provide pumped hydro-electric storage as part of the country’s transition to a more sustainable energy grid. The agreement ensures that workers on this critical project are fairly compensated for their highly skilled and often remote work.

The deal is being hailed by the AWU as a landmark agreement that sets a new benchmark for conditions in the tunnelling and infrastructure sector.