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Australian Unions End Inpex LNG Strike After Reaching New Pay Deal
Australian unions have suspended strike action at Inpex's Ichthys LNG facilities after reaching a new employment agreement covering issues including pay, job security and working conditions. Starting from 2 June, the strike halted shipments of LNG and put one production train at Darwin plant out of services. The tentative agreement was ratified by over 400 workers, providing a 3% annual pay increase and protections against permanent jobs being outsourced. The deal ends weeks of labor talks between unions and the Japanese energy firm.
Key Highlights
- Australian unions, Inpex agree to end Ichthys LNG strike action
- The Offshore Alliance said No strikes will take place beyond 6 pm Wednesday.
- It also includes a three percent annual pay raise and better job security.
- The strike halted LNG production and shut a single liquefied natural gas (LNG) production train.
Australian unions have settled a deal with Inpex to stop strike action at the firm's Ichthys liquefied natural gas (LNG) sites in Australia.
The industrial action started on June 2, suspending LNG deliveries and in recent days, Inpex had been forced to halt one of its two LNG production at the Darwin plant.
Strike ends with new deal
All strike action would cease by 6 p.m. Wednesday, the union group Offshore Alliance, composed of the Australian Workers Union and Maritime Union of Australia, said. 400 Union members voted in favour of the settlement and the Electrical Trades Union also supported it.
The Offshore Alliance claims that the new agreement offers better job security, wages, job career progression and rights at work/working arrangements. The deal features a 3% annual pay increase, provisions that would hire outside contractors at lower rates for permanent jobs within the agreement and more flexibility in offshore workers' rosters.
LNG Operations Set to Resume
The union said two cargoes of condensate and one of LNG were missed because of the strike, and estimated each day off at Inpex would have cost the company about A$200 million ($130 million) in lost earnings.
Electrical Trades Union Northern Territory organiser Dave Hayes said work restarted after the agreement was settled by Tuesday night. With one being operational, he anticipated the second production train to come back online in a few days. There was also a possible load of an LNG tanker on Wednesday, he added.
Ichthys can produce 9.3 million metric tons of LNG per year, or about 10% of Australia's total LNG supply.
Weeks of Negotiations Yield Settlement
Inpex has been negotiating with the Offshore Alliance since last year and threatened industrial action in April. The unions announced their intentions to continue the strike through to July 6 after a labour tribunal in Australia dismissed Inpex's bid to have the action stopped and also ordered both parties back into negotiations.
Earlier this week, unions said Inpex didn't come back with a new enterprise agreement and that was why they extended the strike. The two sides came to a new agreement on Tuesday night and the dispute was settled.
Source: Reuters
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