CANBERRA, Australia: In a recent development on Friday, labour unions have decided to bring an end to the disruptive strike actions at Chevron Corp.’s three liquefied natural gas (LNG) plants in Australia.
These facilities are significant contributors, accounting for over 5% of the world’s LNG supplies. Chevron Australia, in collabouration with the Offshore Alliance, has accepted the recommendation of an arbitrator to settle a dispute regarding pay and working conditions. The Offshore Alliance comprises the Australian Workers’ Union and the Maritime Union of Australia, representing offshore oil and gas industry workers.
Details of the proposed contract terms were not disclosed by either party. The strike actions involved approximately 500 unionized staff who had not yet accepted updated employment contracts at Chevron’s three facilities in the Pilbara region of Western Australia: Gorgon, Wheatstone Platform, and Wheatstone Downstream. These plants contribute significantly to global LNG supply, ranging between 5% and 7%, and the unrest had affected global gas prices since the strike commenced on September 8.
In a joint statement, the unions announced, “The Offshore Alliance will now work with Chevron to finalize the drafting of the three agreements, and members will soon cease current industrial action.”
Chevron confirmed its acceptance of the arbitrator’s recommendation, facilitated by Fair Work Commissioner Bernie Riordan, aimed at resolving all outstanding issues and finalizing the agreements. The company reiterated its commitment to engaging in meaningful negotiations to reach Enterprise Agreements with competitive remuneration and conditions for its employees.
An Enterprise Bargaining Agreement (EBA) in the Australian context refers to an employment contract governing wages and working conditions negotiated and updated at the organizational level, distinguishing it from agreements affecting entire industries.
Chevron stands as the last major gas producer in Western Australia without a current agreement, following recent agreement ratifications by employees at Shell, INPEX Corp., and Woodside Energy.
This week, Chevron reported a fault at its Wheatstone plant, coinciding with an escalation in the union strike action, leading to a temporary reduction in LNG output to 80% for three days. However, LNG loading onto ships remained unaffected, and scheduled deliveries proceeded as planned, according to Chevron. The Wheatstone plant has an annual LNG production capacity of 8.9 million metric tons (9.8 million U.S. tons).
