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SYDNEY, Sept 22 (Reuters) – An Australian union alliance on Friday called off strikes at Chevron’s two major local liquefied natural gas (LNG) projects, agreeing to resolve disputes that had threatened to disrupt around 7% of global LNG supplies.
The union alliance and Chevron accepted proposals on pay and conditions from the country’s industrial arbitrator for the Gorgon and Wheatstone LNG facilities, and workers were set to end strikes that began two weeks ago.
“The Offshore Alliance will now work with Chevron to finalise the drafting of the agreement and members will soon cease current industrial action,” Offshore Alliance spokesperson Brad Gandy said in a statement.
The agreement would end a wage fight that has roiled global gas markets for six weeks and sent LNG prices up as much as 35% in August. Markets eased after a dispute involving the country’s biggest LNG plant, run by Woodside Energy, was resolved.
The proposed deal includes “substantial improvements” in pay, job security, locked-in rosters and career progression, the alliance, which combines two unions, said.
At a short hearing on Friday the Fair Work Commission (FWC) adjourned the matter for four weeks while the two sides drafted the final terms of the deal.
On Thursday, the commission, which has the power to impose a settlement, said it “strongly recommended” parties accept its proposals to end work stoppages.
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