Chevron Australia Pty. Ltd. has turned to a government tribunal for further assistance in finalizing employment agreements, as liquefied natural gas (LNG) workers announced their intention to resume strike action.

A coalition formed by the Australian Workers’ Union and the Maritime Union of Australia, known as the Offshore Alliance, alleges that Chevron Australia has reneged on previously agreed-upon government-recommended employment conditions. Consequently, members of the alliance have voted to resume protracted industrial action (PIA) at the Gorgon and Wheatstone facilities in Western Australia.

The strike, initially planned for three weeks, commenced on September 8 after the two parties failed to reach a bargaining agreement despite mediation by the Fair Work Commission (FWC). In a statement issued on September 25, the union temporarily suspended the strike following Chevron Australia's acceptance of an FWC recommendation and union members agreeing to the tribunal's proposed terms.

Chevron Australia acknowledged the union's notice of strike resumption starting on October 19, expressing its belief that the strike is "unnecessary," given the company's ongoing efforts to engage the FWC in finalizing the Enterprise Agreements.

"In line with the directions of the Full Bench of the Fair Work Commission, Chevron Australia has today sought the assistance of Commissioner Bernie Riordan to conclude the drafting of the Enterprise Agreements for our Gorgon and Wheatstone gas facilities," stated Chevron Australia in a message to Rigzone.

An enterprise agreement in Australia represents a negotiated text between workers and their employer regarding the minimum conditions of employment, including wages. It is valid for four years but remains in effect until replaced by a new agreement or terminated by the FWC.

The labor tribunal's recommendation, issued on September 21, outlined employment terms covering work hours, accommodation conditions, allowances, salary, promotion, and job security. Chevron Australia stated that the company and the unions have made substantial progress in implementing Commissioner Riordan's recommendation but have a few outstanding issues. The company has sought clarification from the FWC to finalize the Enterprise Agreements, allowing them to be put to a vote by employees.

"We remain committed to implementing Commissioner Riordan’s Recommendation by resolving these items," Chevron Australia assured.

Chevron Australia has also received Notices of Intention to Take Protected Industrial Action at the Gorgon and Wheatstone facilities for work stoppages and partial work bans beginning on October 19, 2023. Despite viewing industrial action as unnecessary, the company continues to take steps to ensure safe and reliable operations in the event of facility disruption.

The Offshore Alliance, in a statement on Facebook, announced their decision to suspend the strike after Chevron Australia's commitment to accepting the FWC recommendation "without qualification." However, the union maintained that protected industrial action would commence if any recommendation is not fully incorporated into the enterprise bargaining agreements or if there is ambiguity in the draft agreements' terms.

Chevron Australia confirmed its acceptance of the FWC recommendation on September 21 after initially resisting what it considered to be above-market-level demands by workers. The Offshore Alliance contends that its demands align with industry standards and that Chevron Australia is the only major player in Western Australia without an agreement on minimum employment conditions.