The union representing workers from Australian independent Woodside Energy's North West Shelf (NWS) gas platforms offshore Western Australia (WA) intends to start industrial action in September if the meeting with the firm on 23 August does not deliver sought outcomes.
The Offshore Alliance (OA), a partnership between the Australian Workers' Union (AWU) and the Maritime Union of Australia representing the platform staff, said strike action could take place from 2 September should further talks with Woodside fail to achieve favourable outcomes regarding pay and condition demands.
The announcement comes after a weekend meeting in which members unanimously agreed to instruct the OA to serve Woodside with a notice of proposed protected industrial action following the next meeting, the OA said on 20 August.
Talks held last week broke down amid criticism from the union on the conduct of Woodside representatives.
"OA members don't take industrial action lightly, but Woodside is really leaving them with little choice here," said OA spokesperson, AWU WA secretary Brad Gandy. "The Alliance first approached Woodside to bargain for an agreement to apply to the NWS platforms in May 2022. Woodside has dragged this out and brought us all along with them."
The OA has disclosed that it is considering 20 separate options for industrial action, including work stoppages, bans on unloading supplies and refusal to endorse skills assessment forms for both Woodside employees and contractors planning works on the platforms.
The OA said strike action could mirror that taken at Shell's 3.6mn t/yr Prelude facility in 2022, which weighed on that firm's LNG production in July-September and led to a 2pc fall in output for the quarter.
Chevron faces vote
Additionally, employees at Chevron's 8.9mn t/yr Wheatstone LNG and 15.6mn t/yr Gorgon LNG will return ballots on taking protected industrial action on 24 August while Chevron's Wheatstone platform members will return ballots on 28 August, an OA spokesman said.
The OA is advising members to vote yes in response to the questions related to the proposed industrial action in all three ballots, in light of disagreements on job security, agreed rosters, mutual agreement on transfers to other Chevron worksites, the working of overcycle, training standards, travel arrangements and pay rates.
Asian buyers grow increasingly concerned
Asian term offtakers from NWS have not yet received any official communication from the supplier, but many of them are increasingly concerned as the possibility of industrial action grows more likely.
A Chinese term offtaker has expressed concerns about the security of their contracted term volumes because of the evolving situation, and pointed out that it might not be in the suppliers' interest to ensure a favourable resolution during the negotiations on 23 August as industrial action will mean more price upside, amid particularly weak spot demand for the whole of this year so far.
