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Home » Chevron Accepts Australian Tribunal's Arbitration Terms to End LNG Strikes

Chevron Accepts Australian Tribunal's Arbitration Terms to End LNG Strikes

A GROUND VIEW LOOKING UP AT A CHEVRON SIGN NEXT TO A SKYSCRAPER.
Alberta, Canada. Photo: iStock.com/jewhyte
September 21, 2023
SupplyChainBrain

Oil and gas giant Chevron said September 21 that it would accept the terms of a deal brokered by an Australian labor regulator to resolve the organization's dispute with unionized employees at two of the company's liquified natural gas (LNG) plants in Australia. According to Reuters, a successful deal could end the strikes that started almost two weeks ago at plants that supply about 7% of the world’s liquified natural gas.

The Fair Work Commission (FWC) “strongly recommended” the parties accept its proposals to end work stoppages that began September 8 at Chevron’s Wheatstone and Gorgon facilities.

A Chevron spokesperson said the company had accepted the recommendations to resolve all outstanding issues and finalize any agreements. The spokesperson added that Chevron has made the FWC commissioner aware of its position and written to the unions confirming the company's acceptance of the terms. 

An anonymous official said that union members are currently meeting to discuss the FWC’s proposed deal.

The two sides have until 7:00 p.m. ET on September 21 to decide whether or not they will accept the commission’s recommendations.

Chevron pursued legal actions with the FWC after contract negotiations between the two sides broke down September 8. Previously, Chevron had been negotiating with workers alongside Woodside Energy over improved benefits like higher wages and better working conditions. However, hundreds of workers at the facilities began holding short strikes with two weeks of 24-hour strikes scheduled to start after September 7 following the breakdown of contract talks.

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