Strikes End at Chevron's Australian LNG Facilities
Posted 22/09/2023 13:11
An Australian union alliance has called off strikes at Chevron's two major liquefied natural gas (LNG) projects in the country, marking a resolution to disputes that posed a threat to around 7% of global LNG supplies.
The union alliance, along with Chevron, has accepted proposals regarding pay and conditions from the country's industrial arbitrator, specifically for the Gorgon and Wheatstone LNG facilities. Workers are set to conclude the strikes that began two weeks ago.
Offshore Alliance spokesperson Brad Gandy stated that they would now collaborate with Chevron to finalize the agreement's drafting, leading to the cessation of ongoing industrial action by members.
This agreement effectively resolves a six-week wage dispute that had a significant impact on global gas markets, leading to LNG price increases of up to 35% in August. Market conditions eased following the resolution of a dispute involving Woodside Energy, Australia's largest LNG plant operator.
The proposed deal includes substantial improvements in terms of pay, job security, fixed rosters, and career progression, according to the alliance, which is composed of two unions.
In a brief hearing on Friday, the Fair Work Commission (FWC) adjourned the matter for four weeks to allow both parties to finalize the terms of the agreement. On Thursday, the FWC, which has the authority to impose a settlement, strongly recommended that the parties accept its proposals to end the work stoppages.
Notably, no LNG shipments were disrupted during the industrial action, even after an issue occurred at the Wheatstone plant.
The alliance had been pushing Chevron to match the pay terms that Woodside agreed upon in its inaugural deal with the unions. Under the Woodside agreement, total remuneration for offshore platform technicians ranged from A$350,233 at entry level to A$418,337 at the highest level, as per figures submitted by the union to the commission.
Energy analyst Saul Kavonic expects that this deal will likely put an end to most industrial actions offshore Western Australia, with union agreements now in place for most offshore LNG sites. However, he also anticipates that unions may increase their membership following their recent successes, and there is still some potential for additional union action at the North West Shelf LNG plant and certain offshore floating production storage and offloading units next year.
