16/05/2008 - Unions have threatened widespread industrial action after Premier Morris Iemma pushed further ahead with plans to privatise NSW's electricity industry.
Only hours before leaving on a nine-day trip to China, Iemma angered the union movement by giving NSW parliament notice of legislation to enable his electricity sell-off.
Iemma's announcement followed cabinet and caucus meetings earlier on Thursday.
The bills, to be debated in June, will guarantee MPs a vote on the proposal.
The Electricity Industry Restructuring Bill also leaves open the possibility of the state government selling off its power generators by way of an initial public offering.
However, Iemma insists his preference remains to lease out the generators in long-term agreements, while selling off the electricity retailers.
Union NSW boss John Robertson said he was disappointed the premier had given notice of the legislation while negotiations were continuing.
He said unions were preparing widespread industrial action against the government, possibly starting next week.
Unions have previously refused to be drawn on what action would be taken if the government pushed ahead with the sale.
"The workplaces will determine (what type of action), but it will be targeted at the government and looking to minimise the impact on the community," Robertson told reporters.
"I can imagine that you'll start to see that by the middle of next week."
Iemma said the legislation would not change his negotiations with unions opposed to the privatisation plan.
"This does not close the door on those discussions," Iemma told reporters on Thursday.
"There is flexibility in the enabling legislation for any option that stacks up."
As well as angering unions, electricity privatisation has also caused a split within ALP ranks and Iemma's parliamentary team.
The ALP state conference overwhelmingly rejected the plan earlier this month, while up to 20 MPs are said to be opposed to the sale.
Only on Wednesday two upper house Labor MPs, Ian West and Linda Voltz, threatened to break party ranks and back a Greens motion to ensure a parliamentary vote on privatisation.
Iemma on Thursday said his legislation would ensure that vote, and he expected all of his MPs to show "caucus solidarity" and support the proposal on the floor of parliament.
He would not be drawn on what the punishment would be for any MP crossing the floor.
Robertson said a campaign targeting individual Labor MPs would be intensified in the hope of getting them to vote against privatisation.
"The only positive here is that finally the Labor members of parliament will be given the opportunity to vote against legislation and support the decision taken by the state conference," he said.
Opposition Leader Barry O'Farrell said Iemma was pressuring unions to broker a compromise over the sale.
O'Farrell, who has given in-principle support to privatisation, has not ruled out voting against the government's legislation if certain conditions are not met.
Source: AAP NewsWire
