Chevron gas workers endorse Australian strike action

Members of the Offshore Alliance (OA) union representing staff at Chevron's two Australian LNG plants have voted in favour of industrial action, saying negotiations have stalled on key pay and conditions demands.

The OA said 450 union members at the 15.6mn t/yr Gorgon and 8.9mn t/yr Wheatstone LNG downstream facilities in Western Australia's (WA) Pilbara region voted 99pc in favour of industrial action on 24 August, which could lead to work bans should Chevron fail to offer an industry standard enterprise agreement (EA). Bans could include refusing to load LNG or condensate or complete stoppages of work, although at least seven days notice must be given to Chevron before any strikes take place.

Chevron has proposed remuneration terms lower than some tier two oil and gas operators in Australian waters, the OA said, while attempting to circumvent the process by offering a non-union EA.

"Chevron has chosen to roll out agreements to its Gorgon and Wheatstone downstream workforce that are not supported by the OA, as they do not address key bargaining claims and do not meet the industry standard set by OA members at other facilities," OA spokesman Brad Gandy said.

"It's baffling that Chevron management has decided to engage in what is essentially a time-wasting exercise when the vast majority of its employees are voting on whether to approve industrial action."

A Chevron spokesman said the firm will continue to work through the bargaining process to seek outcomes that are in the interests of both employees and the company.

"While we don't believe that industrial action is necessary for agreement to be reached, we recognise employees have the right to take protected industrial action and we will continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities."

Following an in-principle deal struck between the OA and Australian independent Woodside, Chevron remains the sole WA LNG producer with no industry standard EA covering its workforce.

Wheatstone platform members will return a separate ballot regarding industrial action on 28 August, an OA spokesman said on 21 August.

By Tom Major