Employees at Chevron’s Australian LNG Sites Kick Off Strike Vote
A union alliance announced on Friday that workers at Chevron’s (CVX.N) Gorgon and Wheatstone liquefied natural gas (LNG) facilities in Australia will begin voting on Friday to determine if they wish to strike over wage and working condition disputes.
Australia’s labour regulator last week cleared the way for unions to hold a “protected action ballot,” which allows employees to vote secretly, fueling fears that a strike could slow the country’s LNG exports.
Australia, Qatar, and the United States are among the world’s largest LNG exporters. Fear of a strike has caused volatility in European gas prices as buyers in Asia and Europe compete for cargoes. China and Japan are the top two importers of Australian LNG, followed by South Korea and Taiwan.
After a successful vote, the union can decide whether or not to proceed with the action within thirty days. Employers are given advance notice.
“It’s game on in pushing back against Chevron’s sub-standard employment standards,” said the Offshore Alliance, which combines the Maritime Union of Australia and Australian Workers’ Union, and urged workers to vote for all the demands on the ballot.
Navigating Negotiations: Chevron’s Ongoing Discussions with Employees
Chevron continued negotiations with employees, according to a company spokesperson. In case the labor regulator’s decision caused a disruption, the company stated last week that it was taking precautions to maintain reliable operations.
Woodside Energy Group (WDS.AX), which operates Australia’s largest LNG plant at North West Shelf, and Chevron have been in talks with unions to prevent impending strikes at their facilities, which collectively supply approximately 10% of the global LNG market.
About 99% of workers at offshore platforms that feed gas to the North West Shelf have already backed industrial action. The unions have not yet called for action, which could range from brief work stoppages and restrictions on specific tasks to a full-fledged strike.
Last year, a two-month battle with Shell (SHEL.L) at its Prelude floating LNG site off the coast of northwest Australia cost the company about $1 billion in lost exports until a pay deal was reached.
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Source: The Reuters
