Vic power no longer under strike threat

Kaitlyn Offer
AAP
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Vic power no longer under strike threat

Strikes at one of Victoria's largest power plants won't go ahead and pay negotiations will resume after the state government stepped in.

Workers at AGL's Loy Yang planned to stop work from May 15 over an ongoing pay dispute, so the company decided to lock them out.

With the state's electricity supply at risk, the Victorian government successfully intervened and the Fair Work Commission terminated the industrial action.

"There was no circumstances under which the threat to Victoria's electricity supply could be justified or justifiable," Energy Minister Lily D'Ambrosio told reporters on Tuesday.

"Now it's really down to the parties, who I understand are taking the opportunity to sit down and work through their remaining issues, and we're confident they'll come to a conclusion on that."

A statement from AGL on Tuesday confirmed its own action and the Electrical Trade Union's planned action would not go ahead.

Loy Yang A produces about 30 per cent of Victoria's electricity and employs about 580 workers at the Traralgon site.

AGL had been negotiating a new pay agreement with workers at the plant for more than 18 months.

But talks boiled over when the Fair Work Commission in January agreed to end the existing pay deal, sparking the union action.