Workers at Chevron’s Australian liquefied natural gas (LNG) projects kicked off their strike over disputes regarding wages and conditions on Friday as a deal to prevent such a strike fell through. These facilities represent over 5 percent of the global LNG supply.
Australia, the world’s largest LNG exporter, mainly serves Asian buyers. The strike could impact global gas prices as concerns grow about reduced Australian supply. If the disagreement persists, a two-week total strike might follow.
Reuters reported that the management of Chevron had many unsuccessful resolution meetings with the union.
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“Unfortunately, following numerous meetings and conciliation sessions before the Fair Work Commission, we remain apart on key terms,” a Chevron spokesperson said.
“The unions continue to seek terms that are above and beyond equivalent terms with others in the industry, including in agreements recently reached.”
The unions had announced that work stoppages, potentially lasting up to 11 hours, would commence at 1 p.m. Perth time (0500 GMT) and were anticipated to continue until September 14th.
Reuters reported that the union issued a warning that a two-week complete strike might follow if the ongoing dispute concerning wages and conditions persisted without resolution.
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It remains unclear whether the strike has commenced, the news agency said, as union representatives were not immediately accessible for comments. The Offshore Alliance, comprising two unions, previously stated that Chevron had requested concessions they couldn’t agree to.
“Despite the Offshore Alliance giving Chevron plenty of opportunity to sort out (bargaining agreements),…they will finally be facing their day of reckoning,” the union alliance said in a Facebook post.
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“It’s game on, Chevron.”
The U.S. energy major said it would continue to take steps to maintain operations if any disruptions occur, without giving details. The union had warned that the LNG plant would have to be shut down “if there are not competent personnel to undertake handovers during work stoppages”.
Chevron plans to maintain operations during disruptions. While the strike’s immediate impact is uncertain, it highlights ongoing negotiations between the parties. China, Japan, South Korea, and Taiwan are among the top buyers of Australian LNG.
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