More than 800 staff have been stood down from the $36 billion Inpex gas project in Darwin over a contract dispute, a decision the CFMEU says was a "complete shock".
Construction group Laing O'Rourke has stood down around 245 local workers and around 395 fly-in fly-out workers over a dispute with consortium partner Kawasaki Heavy Industries.
A CMFEU spokesperson said 200 subcontractors had also been stood down.
Principal contractor JKC Australia says local workers have been told to go home, while fly-In fly-out workers will be placed on the next available flight out.
"They've all been shipped back to the camp and at the moment are packing their bags and heading to the airport," CFMEU spokesman Josh Burling told ABC News 24.
Mr Burling said some people were told they were redundant when they arrived at work at 6am on Wednesday.
"I would imagine they're not handling it too well at all," he said.
"They've got to go home now and tell their wives, families there's no more money coming in.
"Work is scarce at the moment, particularly in Darwin itself.
"It's a complete shock."
Laing O'Rourke and Kawasaki are part of a consortium tasked with constructing a network of four massive cryogenic tanks for the project.
JKC says that contract remained in place and it was confident Laing O'Rourke and Kawasaki would resolve the dispute.
"JKC's expectation is that the parties will resolve the matters in dispute and the works will continue," Executive Director John Bramley said in a statement.
It said the construction of the cryogenic tanks is approximately 91 per cent complete.
Labor leader Bill Shorten said workers have become cannon fodder in the legal battle between two employers.
"These people should be reinstated," he told reporters in Melbourne.
He described it as a pretty, sad state of affairs when blue-collar tradies were sent home because of a contractual dispute.
"I think the government should try to facilitate talks to get these guys back to work because the work needs to be done and they are a good workforce," he said.
