The US firm argued further mediation would be fruitless but the Fair Work Commission ordered more talks ahead of a hearing on its bid for enforced arbitration.
Chevron and the Offshore Alliance of trade unions have been sent back to mediation ahead of a full bench hearing of the Fair Work Commission set for September 22 in a last-ditch effort to resolve the protracted industrial dispute that is threatening Australia’s LNG exports.
Chevron has asked the FWC to make a declaration of “intractable bargaining” in the dispute – in a bid for enforceable arbitration to resolve it – saying the positions of the two sides are “entrenched” with significant differences. It claims the unions are seeking terms well beyond employment agreements struck at similar LNG projects in Australia by Woodside Energy, Shell and Japan’s Inpex, and that further talks would be fruitless.
Between them, Gorgon and Wheatstone account for about 7 per cent of the world’s LNG supply, and about 47 per cent of WA’s domestic gas, which fuels the state’s huge iron ore mining and metals processing activities. European benchmark gas prices have risen 5.5 per cent over the past week, partly because of the risk of disruptions to Australian LNG.
Energy analyst Saul Kavonic, who is closely tracking the dispute, said the situation is escalating, but it is premature to assume a material disruption to gas supply. “We expect the unions will escalate strikes from Thursday, but it may be more measured than 24/7 rolling strikes for two weeks,” he said.
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