Employees at Gina Rinehart’s Roy Hill mine project are set to receive a bonus of $205 a week if they do not take strike action.
In a deal brokered by the AWU, the bonus has been included in the workplace agreements of Diverse Tank Engineering and Neville Mallard which both work at the $7 billion iron ore mine.
In documents submitted with the Fair Work Commission, the payment, known as a ''project incentive payment”, will be forfeited should workers participate in industrial action, SMH reports.
''In any week in which an employee engages in industrial activity not approved by the employer that ceases or disrupts operations, the payment will be forfeited in full,” the condition says.
The money can also be cancelled for unexplained absences.
The AWU has overseen more than 120 workplace agreements for contract companies working on Roy Hill.
Roy Hill has said the AWU's approach is ''firm but collaborative''.
While the union’s WA secretary, Stephen Price, said the relationship with the miner had been good.
''It's an excellent example of how you can work with companies to get the project up,'' he said.
However others say the workplace agreements are a power play by the union and shows how the labour movement still has a stronghold over major Australian projects, with the bonus payment set to rise to $215 a week in 2015.
''There is a commercial reality about the degree of power unions have in making these agreements and that is expressed in the generous terms and conditions which are often well beyond that needed to meet the demand for labour,'' workplace relations advisor Chris Gardner said.