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Chevron and Unions Reach Agreement, Ending Strike at Australian LNG Plant

Chevron Corp. and labor unions have successfully reached an agreement, bringing an end to the strike that has disrupted operations at a liquefied natural gas (LNG) plant in Australia and had a ripple effect on the global fuel market.

The Offshore Alliance, a coalition representing two major trade union groups, issued a statement today, September 22, confirming that the workers have accepted the proposed wage and working conditions agreement put forth by labor regulators in Australia. This acceptance signals the resolution of the strike.

The Western Australian secretary of the Australian Labor Union stated, “The Offshore Alliance will collaborate with Chevron to finalize the agreement, and our union members will soon cease their industrial action.” The comprehensive agreement encompasses enhancements in several key areas, including wages, job security, and work schedules.

Chevron officially confirmed their acceptance of the aforementioned offer on September 21 but has refrained from commenting on the decision of union members today.

The movement towards acceptance of these conditions by labor regulatory authorities has effectively put an end to the dispute that initially triggered industrial action on September 8 at both the Gorgon and Wheatstone plants. Together, these plants accounted for approximately 7% of the global LNG supply last year. Union members at Chevron’s facilities had gradually escalated their strike, commencing with a 24-hour full-scale strike.

Yesterday, approximately 350 workers gathered and ratified the labor regulatory agency’s proposal, which includes increased allowances for remote work and compensation for travel delays. This positive development not only marks the cessation of the strike but also holds promising implications for the stability of LNG production at these facilities, providing a sense of relief to both the industry and the global energy market.

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