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Chevron bids to avert LNG strike with direct pay offer


24 Aug 2023 09:35




23 Aug 2023 06:54

(Montel) Chevron will sideline unions next week to make a separate offer to its West Australian LNG workers, it said on Wednesday in a bid to end an industrial dispute that could curb global supply.

Chevron would put its proposals for better pay and conditions to a vote among workers at its Gorgon (15.6m tonnes/year) and Wheatstone (8.9m tonnes/year) facilities next Wednesday and Thursday. 

“We’re providing a proposed enterprise agreement for relevant employees at each of our Gorgon and Wheatstone onshore gas facilities to consider and vote on,” a spokesperson for the energy firm told Montel in a statement.

“The proposed agreements deliver significant value for our employees and would take effect as soon as operational if supported.” 

Chevron would “continue to engage with employees and their representatives in the bargaining process” while employees considered the agreements, the spokesperson added. 

Strike threat looms
Montel understands the proposals do not have the endorsement of unions, who are seeking the workers’ support for strikes via ballots whose results are expected this Thursday and Friday. 

Worker approval to engage in strikes would clear the way for unions to announce actions targeting the relevant facilities with seven working days’ notice. 

A similar vote earlier this month in a separate dispute with Woodside workers at that company’s North West Shelf facilities (16.9m tonnes/year) returned overwhelming support for strike action. 

Crunch talks between unions and Woodside were currently underway. Unions have threatened to announce strikes on Woodside’s assets that could commence from 2 September at the earliest if a deal is not reached today.

Woodside and the unions were unavailable for comment at the time of publication.  

The three LNG export terminals provide roughly 10% of global supply.

Corrects Wheatstone production capacity to 8.9m tonnes/year.

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