💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

Chevron Australia LNG workers threaten to resume strikes after talks breakdown

Published 2023-10-05, 03:02 a/m
© Reuters. A general view of Chevron's Wheatstone LNG facility in Pilbara coast, Western Australia, as seen in this undated handout  image  obtained by Reuters on September 8, 2023.    Chevron/Handout via REUTERS
CVX
-

By Lewis Jackson

SYDNEY (Reuters) -Efforts to finalise a pact that ended strikes at Chevron (NYSE:CVX)'s two Australian liquefied natural gas (LNG) plants stumbled on Thursday, when workers voted to restart stoppages after unions accused the U.S. energy major of reneging on commitments.

Workers called off major strikes in late September after unions and Chevron accepted proposals on pay and conditions proposed by the country's industrial arbitrator, the Fair Work Commission (FWC).

But following nearly two weeks of negotiations to turn the commission's broad recommendations into a legally binding contract, unions on Thursday accused Chevron of "reneging" on key commitments.

At a late night meeting, workers voted to restart strike action at the Gorgon and Wheatstone facilities, responsible for around 7% of global LNG production, according to a union representative, who declined to be named.

Unions must formally provide Chevron seven days' notice before any strikes can start. This is expected to happen on Monday, the union representative said. Following the notice period, unions have the right but not the obligation to strike.

Chevron said earlier on Thursday that it continued to work with all parties to finalise a deal based on recommendations made by Australia's industrial arbitrator in September.

"Ideally both parties don't want to see strikes eventuate again, and a vote to strike will act as pressure to finalise the agreements. But if trust is breaking down we could end up where we were a month ago quite quickly," energy analyst Saul Kavonic said on Thursday.

"Overall, it is still very likely this will all resolve one way or another without a material supply disruption."

Chevron and unions had made progress drafting the agreement, but differences remained over issues such as reimbursement for meals or travel for training, according to a second union representative involved in the negotiations.

If the two sides fail to reach a deal, the matter could go back to the commission, which had been due to begin hearings on whether to intervene and end strikes when the parties reached an 11th-hour agreement.

© Reuters. A general view of Chevron's Wheatstone LNG facility in Pilbara coast, Western Australia, as seen in this undated handout  image  obtained by Reuters on September 8, 2023.    Chevron/Handout via REUTERS

Those hearings were adjourned for four weeks in late September to give time to draft an agreement. Chevron would need to give seven days' notice before resuming the matter.

Weeks of strikes at Chevron's Gorgon and Wheatstone facilities roiled natural gas markets, though no LNG shipments were disrupted.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.