Union commits to ending Chevron Australia LNG strikes

The Offshore Alliance (OA) union will cease strikes and accept a deal brokered by Australia's industrial umpire the Fair Work Commission (FWC) to end its dispute with Chevron Australia, after a late-night vote of more than 350 workers.

The announcement is likely to end two weeks of industrial action that threatened LNG exports and domestic gas supplies and caused volatility in European gas markets.

OA members from Chevron's gas facilities, the 15.6mn t/yr Gorgon LNG, Wheatstone offshore gas platform and 8.9mn t/yr Wheatstone LNG, met at 7pm Western Australia (WA) time (11am GMT) on 21 September to consider recommendations put to both sides yesterday morning by FWC commissioner Bernie Riordan.

The OA said members backed the three proposed enterprise agreements (EAs) incorporating Riordan's recommendations. The union will now work with Chevron to finalise the drafting of the three agreements and members will end industrial action.

"Commissioner Riordan's recommendation contains substantial improvements in terms and conditions of employment including increased remuneration, job security, locked-in rosters, career progression and returning all employees to a 40pc roster," OA spokesman Brad Gandy said on 22 September.

"The OA will now work with Chevron to finalise the drafting of the agreement and members will soon cease current industrial action."

The OA statement comes after Chevron last night accepted the FWC recommendations, pledging to resolve all outstanding issues and finalise the agreements.

At a hearing in Sydney at 10am AEST (12am GMT) on 22 September, the full bench of the FWC agreed to adjourn Chevron's application for an intractable bargaining declaration by four weeks to allow a deal to be struck, voted on by workers and approved by the FWC.

The union retains the right to file for a strikeout motion, a process to terminate court proceedings at an early stage where either the plaintiff or defendant has no prospect of success, enabling the other party to avoid associated expenses and delays.

By Tom Major