Inpex's Australian LNG worker back pay agreement could set an industry standard
Workers at Inpex’s Ichthys plant for liquefied gas in Darwin have unanimously backed a pay deal that they hope will be replicated across Australia's offshore oil and gas sector.
This agreement is part of what the unions call a "second wave" of bargaining in the energy sector. They are seeking similar pay and working conditions with Shell, Chevron, and Woodside Energy in future negotiations.
The Offshore Alliance, which includes the Australian Workers Union, the Maritime Union of Australia and the Electrical Trades Union, spent months negotiating with Inpex for 470 workers.
DEAL FOLLOWS STRUCTURE
Documents seen by the.
In an email, Inpex Senior VP Corporate Bill Townsend confirms the vote and says the company is preparing to present the agreement for approval by the Fair Work Commission.
Unions expect Shell's Prelude floating gas facility to be the next major battleground for bargaining, they said.
The previous Ichthys contract was signed in 2022.
The two sides came to an agreement that was ratified by the unions.
Inpex tried unsuccessfully to halt the industrial action by arguing that the lost production would hurt Australia's economic situation. After a two-day public hearing, the Fair?Work Commission denied the application.
The impact of industrial action at Chevron’s Wheatstone facility, which took place in 2023, on global LNG supply was a stark reminder of the potential impact that labour disputes can have?in Australia, second largest LNG exporter in the world.
Unions said the Ichthys June strike ?caused two condensate cargoes and one LNG cargo to miss scheduled loadings and estimated the disruption cost Inpex about $200 million in lost earnings ?at the 9.3 million-metric-ton-per-year facility.
According to an overview of the agreement, it also includes enhanced travel and accommodation benefits and limits the use contractors and labour-hire companies in ways that may undermine permanent employment.
(source: Reuters)
