Chevron Workers In Australia Announce Two-Week Strike Over Pay Dispute

(RTTNews) - Workers at two major liquefied natural gas or LNG facilities in Australia, operated by Chevron Corporation (CVX), have declared their intention to strike for a two-week period due to an ongoing dispute concerning pay and working conditions. The Offshore Alliance union, representing employees at the Gorgon and Wheatstone LNG projects in Western Australia, disclosed that the strike will commence on September 14.

The dispute between the workers and Chevron has been intensifying, with both parties struggling to find common ground in their negotiations. The Offshore Alliance, in a statement posted on its Facebook page, refuted Chevron's assertion that the negotiations were "intractable" and vowed to escalate their Protected Industrial Action as a demonstration of their determination. The union highlighted that its members had not yet exercised their lawful workplace rights to undertake such action.

The Offshore Alliance's decision to strike represents a significant escalation in the ongoing disagreement over pay and working conditions. Last month, the union had announced its intention to initiate rolling stoppages, bans, and limitations beginning on September 7. Mediation talks between the workers and Chevron are being facilitated by the Fair Work Commission, Australia's workplace tribunal.

Australia is renowned as one of the world's leading LNG exporters, with the Gorgon and Wheatstone facilities jointly accounting for approximately 7 percent of global LNG supply. The prospect of an extended period of industrial action has generated concerns about potential disruptions to LNG exports, causing significant fluctuations in energy markets in recent weeks.

While Europe has successfully replenished its gas reserves to over 90 percent of capacity since Russia's invasion of Ukraine, a substantial reduction in Australia's LNG production could strain future supplies. The Offshore Alliance firmly believes that Chevron will ultimately concede to their demands, even if it entails significant financial losses for the company.

The union expressed its confidence in Chevron's financial capabilities, quipping that the company has ample resources in its proverbial "piggy bank" to weather the financial impact of the strike. The standoff between Chevron and its workers in Australia continues to garner attention as both sides remain entrenched in their positions, with the strike set to commence in less than two weeks.