Workers at Australian LNG Plant Vote overwhelmingly for Strike Action

The Offshore Alliance, a union group, said that workers at Inpex's Ichthys facility, which produces liquefied gas in Australia, have voted to strike over pay and conditions. This decision could worsen the already strained energy supply globally.

A spokesperson stated that over 98% of the workers who voted favored strike action.

The statement stated that "the results of the vote are clear. A huge majority of Offshore Alliance Members are in favor of exercising their rights to strike in pursuit of?their bargaining demands."

Offshore Alliance members are in favor of various industrial actions, including work halts that range from 30 minutes up to 24 hours.

The union group has agreed to delay any strike action until after the six-day talks between the two parties, which will take place on May 15.

Japanese gas and power utilities who buy from Darwin are closely watching a strike at its 9.3?million-metric-ton-ayear facility.

Australia is Japan's biggest LNG supplier. The country faces a potential supply crisis due to the Iran War and increasing air conditioning demand as Japan enters summer.

A spokesperson for Inpex said that last Friday, a majority eligible employees rejected the pay offer presented by the company.

On Friday, the company did not respond to requests for comment.

The Offshore Alliance is a grouping of Maritime Union of Australia - and the Australian Workers Union. It had already indicated that its 430 member would 'vote against' the new contract. They said it did not meet industry benchmark standards for wages or conditions.

A union representative has estimated that around 95% of the Ichthys employees are unionised. The Australian Fair Work Commission approved the protected action ballot earlier this month.

A strike in 2023 by Offshore Alliance at Chevron Wheatstone's facility in Australia?tightened the global LNG supply.

Since the Iran War began on February 28, more than 20% of the world's LNG has been restricted by the Strait of Hormuz. Helen Clark reported from Perth, Yuka Obayashi from Tokyo and Alasdair Paal edited the story.

(source: Reuters)