Unions in Australia Call off Strikes at Chevron’s LNG Facilities

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Union workers have called off strikes at Chevron’s two major local liquefied natural gas (LNG) projects in Australia, agreeing to resolve disputes that could have affected around 7% of global LNG supply.

An Australian union alliance called off strikes Friday at two major local liquefied natural gas (LNG) facilities belonging to Chevron in the country, ending a standoff that had threatened to affect about 7% of global LNG supply.

Both Chevron and Offshore Alliance, which represents two unions, said they accepted proposals on pay and conditions from the country’s Fair Work Commission (FWC), the workplace relations tribunal.

“The Offshore Alliance will now work with Chevron to finalise the drafting of the agreements and members will soon cease current industrial action,” the alliance said in a statement, adding the proposed deals include “substantial improvements” in pay, job security, locked-in rosters, and career progression.

Chevron also said in a statement it had “accepted the recommendation to resolve all outstanding issues,” adding: “The unions have advised Chevron Australia and the Fair Work Commission that industrial action has been suspended.”

Workers at Chevron’s Gorgon and Wheatstone LNG facilities began walking off the job two weeks ago over pay and other conditions. They notified Chevron of their plans to strike in late August, about a week after the energy giant presented an offer that failed to impress union members.

No LNG shipments were disrupted by the industrial action, even after a fault at the Wheatstone plant.

Friday’s agreement ends a wage fight that has roiled global gas markets for six weeks and sent LNG prices up as much as 35% in August. Markets eased after a similar dispute involving the country’s biggest LNG plant, run by Woodside Energy, was resolved late last month.

At a short hearing on Friday, the FWC, which had convened to hear arguments about whether it should intervene and stop the strikes, adjourned the matter for four weeks while both sides drafted the final terms of the deal.

On Thursday, the commission, which has the power to impose a settlement, outlined recommendations including increased overtime pay in some cases, travel allowance for training, and tighter regulation of work hours.

The FWC said it “strongly recommended” parties accept its proposals to end work stoppages.

Both parties have also outlined plans to set up a workplace committee that will meet quarterly to discuss salary matters, according to the commission.

The alliance was pushing Chevron to match pay terms agreed by Woodside in its first-ever deal with the unions, which set total remuneration for offshore platform technicians at between A$350,233 at entry level and A$418,337 at the highest level, according to figures submitted by the union to the FWC.

The deal caps a years-long campaign by the Offshore Alliance for higher pay and better conditions at major Western Australian LNG sites.