Transgrid's alleged long-term use of outsourcing without consulting employees, including on a billion-dollar interstate infrastructure project, has prompted safety concerns and legal action.

The Electrical Trades Union is seeking penalties, claiming the firm was legally obliged to give staff the chance to prove their "internal efficiencies" before deciding to hire external contractors.

In a Federal Court lawsuit filed on Monday, the union claims a slew of outsourcing decisions made between 2017 and 2024 were made without consulting staff.

"Transgrid's ongoing outsourcing has had a damaging impact on the job security of their own employees and has led to safety and reliability issues on the state's electricity network," Electrical Trades Union NSW/ACT secretary Allen Hicks told AAP.

"Ev

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