Chevron Australia accepts proposal to end LNG dispute

Chevron Australia has agreed to accept recommendations from the Fair Work Commission (FWC) to resolve a long-running pay and conditions dispute covering its LNG projects in Western Australia.

"Chevron Australia has consistently engaged in meaningful negotiations in an effort to finalise enterprise agreements (EAs) with market competitive remuneration and conditions," a spokesperson said at 9pm AEST (11am GMT) on 21 September.

"Today, we were provided a recommendation from Commissioner Riordan. After [consideration], Chevron has accepted the recommendation to resolve all outstanding issues and finalise the agreements."

"We have informed the commissioner of our position and written to the unions and other employee bargaining representatives confirming our acceptance," the spokesperson added.

The acceptance could end Offshore Alliance (OA) union members' strikes which began on 8 September at Chevron's 8.9mn t/yr Wheatstone LNG, Wheatstone offshore gas platform and the 15.6mn t/yr Gorgon LNG. The strikes threatened about 6pc of global production.

The unions that are engaged in negotiations with Chevron will now need to agree on a resolution to the industrial turmoil. At 3pm AEST a spokesman for the OA promised to "carefully consider" Riordan's recommendations before taking direction from members regarding a response.

Woodside EA passes vote

Separately, workers at Australian independent Woodside Energy's offshore platforms that service the 16.9mn t/yr North West Shelf LNG project have voted to back a union-brokered EA finalised on 24 August, the OA announced.

"Great work by the Woodside platform crew in voting 98pc in favour of our EA in the ballot which closed yesterday afternoon," the OA said on 21 September. "The OA members on the Woodside NRC, GWA and Angel platforms have unwound 30 years of Woodside oil and gas workers being employed under individual contracts."

The new EA will now proceed to be registered with the FWC before coming into effect.

By Tom Major