The 24-hour strike meant to begin at 6am this Thursday to end on Friday by workers on roads, construction, manufacturing, food and transport has been stopped by the Industrial Relations Court.
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"We have been barred from striking. It's called off," local Australian Workers' Union organiser, Jack Ayoub, told the Daily Liberal on Wednesday night.
Mr Ayoub, who stood for the Australian Labor Party contesting the Parkes electorate in last May's federal election, was among those who organised the workers' strike at Dubbo.
Those walking out of their jobs on roads, construction projects, council projects and transport were set to down their tools from 6 am Thursday, July 7 until Friday, July 8 at 6 am.
But the IRC on Wednesday night issued a notification order banning the strike by AWU members who are employed by the state government in transport, construction, forestry, mining, energy, electrical, automotive, metals, food, engineering and printing industries.
The court also ordered the officers and employees of the Australian Workers' Union, Construction Forestry Mining and Energy Union, Electrical Trades Union and the Automotive Foods Metals Engineering Printing and Kindred Industries Union to immediately notify their members of the strike ban.
At Dubbo, a large number of the workers were scheduled to gather for the strike at the Rotunda on Macquarie Street at 11 am this Thursday, Mr Ayoub said on Tuesday.
The AWU issued a media statement on Wednesday night saying the strike by AWU members from 69 depots across NSW has been "cancelled".
"The AWU is extremely disappointed with this outcome and the union is currently seeking further legal advice."
The AWU said they will "continue the fight for a fair wage rise".
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AWU's state organiser Cameron Wright said the three percent wage hike offered by premier Dominic Perrottet is "unreasonable" for an average road worker.
"So with inflation running at over five percent, the average road worker is being told to feed their family with significantly less," Mr Wright said on Tuesday.
"These workers don't take industrial action lightly, in fact, they haven't been on strike in a generation. But you can only be pushed so far and this state government has done that pushing," Mr Wright said.
Transport workers however vowed to make themselves available to respond to emergency situations to keep the general public safe with ongoing flood emergencies in various parts of NSW.