Chevron, a U.S. energy company, has sought the intervention of Australia’s workplace arbiter to resolve a labor dispute at its Gorgon and Wheatstone downstream facilities. Despite extensive negotiations and conciliation sessions with the Fair Work Commission, Chevron and the unions representing the workers have been unable to reach an agreement. As a result, partial strikes have commenced at the sites.
In response to the stalemate, Chevron has filed applications for intractable bargaining declarations for both facilities, believing that outside intervention is necessary. Just last week, a similar application was made for the Wheatstone platform.
A Chevron Australia spokesperson expressed disappointment, stating that the unions’ demands far exceed what is considered reasonable in the market. The Offshore Alliance, a partnership of two local unions, is seeking an agreement that aligns with those in place at other energy companies such as Shell and Inpex.
Interestingly, last month, the Offshore Alliance and Woodside Energy reached a preliminary deal that prevented potential strike action at three offshore liquefied-natural-gas platforms in Australia.
The union coalition has not commented on Chevron’s applications to the Fair Work Commission at this time.
As a result of the dispute, workers at the Chevron sites have initiated industrial action, including work bans and short stoppages. Furthermore, a two-week walkout is planned to commence on September 14th.
This labor dispute has had a significant impact on global gas markets, leading to a sharp rise in prices. Australia is one of the largest LNG exporters worldwide, rivaling Qatar in this regard. The Chevron facilities contribute approximately 7% of global LNG supply, making them crucial to the industry.
