Union members approved longer stoppages and added bans, increasing pressure on Inpex as talks stall. Further actions could affect global LNG flows.
On June 8, the Offshore Alliance said that the strike at Inpex’s Ichthys LNG facilities in Australia, which began last week over a pay dispute, would be escalated after talks with the Japanese operator failed to progress.
Ichthys accounts for about 10% of LNG supply from Australia and is currently the world’s second-largest LNG exporter after disruptions at facilities in Qatar due to the war in Iran.
Offshore Alliance, which includes the Maritime Union of Australia and the Australian Workers’ Union, said it would intensify four-hour work stoppages and bans on work at these facilities, which began last Wednesday.
“Last night, members backed work stoppages that will grow to eight hours per day, and we will implement additional work bans on Thursday.”
– Offshore Alliance
According to the union, Inpex, Japan’s largest oil and gas producer, rejected terms agreed during talks facilitated by the Fair Work Commission that took place on Saturday.
The union adds that Inpex is seeking to sign an Enterprise Bargaining Agreement with terms less favorable than those previously discussed, with reduced benefits for remote work, fewer guaranteed full-time positions, lower pay relative to the workers’ skill levels, and with reduced provisions on layoffs compared with industry standards.
Negotiations remain stalled, but workers are prepared to take further steps depending on how events unfold and the positions of the parties in future negotiations.