Add articles to your saved list and come back to them any time.<\/p>\n
Workers on Australia\u2019s biggest LNG facilities have followed through on a threat to down tools after talks between their union and global energy heavyweight Chevron failed to deliver a new employment agreement.<\/p>\n
Chevron and the bargaining representatives from Offshore Alliance have met each day this week in front of the Fair Work Commission to strike new enterprise agreements covering about 500 workers at the company\u2019s Wheatstone and Gorgon operations. The facilities account for up to 5 per cent of the global LNG supply.<\/p>\n
<\/p>\n
Barrow Island in WA is home to Chevron\u2019s massive Gorgon liquefied natural gas plant.<\/span>Credit: <\/span>Chevron<\/cite><\/p>\n The alliance had commission approval to start protective industrial action on Thursday afternoon, which Chevron managed to delay, but by Friday morning negotiations had broken down.<\/p>\n The union, made up of members from the Maritime Union of Australia and the Australian Workers\u2019 Union, announced it would begin rolling stoppages from Friday afternoon.<\/p>\n A Chevron Australia spokesperson confirmed the talks had ended without an agreement being reached, saying the company and the union \u201cremained apart on key terms\u201d.<\/p>\n \u201cThroughout this process, we bargained in good faith and sought to reach an agreement that achieves a market competitive outcome which is in the interests of both employees and the company,\u201d the Chevron spokesperson said.<\/p>\n \u201cThe unions continue to seek terms that are above and beyond equivalent terms with others in the industry, including in agreements recently reached.\u201d<\/p>\n The spokesperson said Chevron had taken steps to maintain safe and reliable operations in the event of any disruption.<\/p>\n The union is seeking improved job security, better pay rates and roster flexibility.<\/p>\n Offshore Alliance spokesman AWU WA Secretary Brad Gandy accused Chevron of being unreasonable.<\/p>\n \u201cIn good faith the Offshore Alliance agreed to a week-long negotiation before the Fair Work Commission starting on Monday; the Alliance even delayed protected industrial action to give the process the chance to succeed, but after five days Chevron has barely budged,\u201d he said.<\/p>\n \u201cIt took until day three for Chevron to bring a changed position on anything of significance, and even then on day four the company backpedalled on the earlier offer it made.\u201d<\/p>\n \u201cChevron are being unreasonable and downright unusual in their behaviour; Offshore Alliance members call on them to change tack so this dispute can be settled and the company can get on with the business of making billions of dollars exporting Australian gas.\u201d<\/p>\n Chevron is facing more disruptive action from next Thursday with the alliance planning a full-blown two-week strike at both facilities.<\/p>\n Disruptions to Chevron\u2019s Western Australian operations could have a significant impact on global and domestic energy prices.<\/p>\n Gorgon exports about 15.6 million tonnes of LNG per year, while Wheatstone exports 8.9 million tonnes. Together, they provide about 30 per cent of WA\u2019s domestic gas supply.<\/p>\n The alliance said staff would continue to work at Chevron\u2019s domestic gas plant over the strikes.<\/p>\n Chevron\u2019s rival Woodside avoided strikes last month after a marathon 15-hour negotiation resulted in pay increases between $20,000 and $50,000 a year and improved job security for workers on three offshore gas platforms that supply the North West Shelf gas export plant.<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.<\/i><\/b> Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in National<\/h2>\n
From our partners<\/h3>\n