Chevron strike to escalate
Unions are planning a significant escalation of industrial action at Chevron’s WA plants.
Rolling 24-hour strikes will soon begin at Chevron's major LNG projects in Western Australia, after the Offshore Alliance - consisting of the Australian Workers' Union and Maritime Union of Australia - informed Chevron of their plan to initiate one-hour stoppages for two weeks from September 14.
The action follows a week marked by rolling stoppages averaging approximately 10 hours daily.
Gorgon and Wheatstone facilities are responsible for about 7 per cent of global LNG supply and 47 per cent of domestic gas in Western Australia.
Any disruptions to production at these plants could impact European gas markets already struggling to replace Russian pipeline supplies and potentially have adverse effects on Western Australia's mining and industrial production.
The announcement of these strikes came despite union participation in mediation sessions with Chevron before the Fair Work Commission, which commenced on Monday.
Both parties are scheduled to meet daily throughout the week with the aim of resolving differences.
A Chevron spokesperson stated on Tuesday that the company is committed to navigating the bargaining process to achieve outcomes beneficial for both employees and the company.
They also pledged to take necessary steps to ensure safe and reliable operations during any potential facility disruptions.
In response to Chevron characterising negotiations as “intractable”, the Alliance has escalated its industrial action, asserting that 24-hour strikes will demonstrate that bargaining remains open and negotiable.
They indicated that their claims would become more reasonable as Chevron's Gorgon and Wheatstone LNG exports decrease.
The Alliance also hinted at potential for escalated work bans, including maintenance work stoppages.
Energy analyst Saul Kavonic suggested that lower-level strikes beginning on Thursday appear highly likely, with the possibility of extending or intensifying strikes in subsequent weeks.
While none of the LNG from these Western Australian projects is directly shipped to Europe, the risk of reduced WA LNG exports has unsettled European gas markets, contributing to recent price spikes.
Similar strike threats at Inpex Corporation's Ichthys LNG in Darwin and the Woodside Energy-managed North West Shelf venture in WA have been averted through the signing of employment agreements with unions.