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Dancers of the Australian Ballet will take industrial action for the first time in more than four decades, after negotiations with management over a new workplace agreement reached an impasse on Monday.

Dancers will “hold the curtain” at this Friday’s performance in Melbourne, meaning the show Identity, a program of two original works, will be delayed by 15 minutes.

In response, ballet management has decided to cancel a one-off bonus performance of a new short work that was scheduled to take place after Friday night’s show, in a move the dancers’ union, the Media Entertainment and Arts Alliance, has called “punitive”, but management said was unavoidable, given the scheduled performance would now run overtime.

“It will be rescheduled to give it the prominence it deserves,” the company said in a statement.

A full-on strike by dancers has not been ruled out. The last time that happened was 42 years ago when they stopped work for 26 days and some shows had to be cancelled. In 2017 the dancers filed for protected industrial action at the Fair Work Commission when negotiations over a new EBA stalled, but an agreement was reached that maintained a longstanding clause guaranteeing dancers’ pay would keep pace with inflation – something management is seeking to strike out in the new agreement.

The MEAA is calling on volunteers to leaflet Friday’s audience and obtain signatures for a petition to send to the company’s executive.

MEAA’s equity director, Michelle Rae, said the action was needed to ensure that the future pay of dancers, who experience a comparatively short career, is not eroded by rising living costs.

“Dancers regret that this action is necessary and the disruption it will cause to enjoyment of Friday night’s performance, but they want the ballet audience to be aware of how management is trying to cut their future pay,” Rae said in a statement.

“The Australian Ballet’s management can avoid the delay to the beginning of the performance by returning to the negotiating table with an improved offer for our members.”

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Dancers have rejected the company’s offer of a 1% pay rise for the remainder of 2023, after receiving a 4.3% retrospective “top-up” increase in February – a pay rise that is required under the terms of the previous agreement, to account for inflation in 2022 that peaked at more than 7%.

As reported in the Guardian on 8 June, 91% of dancers voted to commence industrial action earlier this year, after negotiations which began with management last September reached a stalemate.

Dancers speaking anonymously told Guardian Australia they felt management had not acted in good faith, given they had agreed to a pay cut of 20% and then 50%, as theatres across the country were forced to close due to Covid-19. The dancers then agreed to a pay freeze for the remainder of 2021.

The company told Guardian Australia the 50% pay cut was for only a short period of time and in May 2020 it assisted 10 dancers who were suffering financial hardship with an average payment of $5,495 each.

Earlier this month, the company told the Guardian that dancers’ pay packets in 2023 would still be 5.3% higher than last year, taking into account the 4.3% top up already paid in February.

The MEAA said including the 4.3% top up as part of the 2023 pay rise was “misleading”.

Guardian Australia has sought comment from the Australian Ballet.

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