Australian unions call off strike by workers at Chevron's LNG plants

Australian unions are calling off a strike by workers at two Chevron liquefied natural gas (LNG) plants. The Offshore Alliance union has accepted a mediator’s proposals to end long-running disputes over pay and working conditions. The dispute rattled global gas markets amid fears that strikes would disrupt production at Chevron’s Gorgon and Wheatstone LNG plants, which produce approximately seven percent of the world’s LNG supply. Reuters reported today.

Offshore Alliance will now work with Chevron to finalise the proposed agreement, and its members will end the current strikes shortly,“ the organisation’s spokesperson, Brad Gandy, said in a statement.

The proposed agreement, which would end strikes that began two weeks ago, includes „substantial improvements“ in pay, job security, agreed work schedules and career progression, the organisation, which represents two unions, said.

The dispute rattled gas markets for six weeks and drove LNG prices up by as much as 35 percent in August. Markets calmed after a dispute involving the country’s largest LNG plant, operated by Woodside Energy, was resolved.

The Fair Work Commission, which has the authority to impose an agreement, said it „strongly recommended“ that the parties accept its proposals to end the strike. Chevron accepted the terms of arbitration late on Thursday. Today, the commission adjourned the proceedings for four weeks to allow both sides to draw up the final terms of the agreement.

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