Gas giant workers ready to strike over ‘dodgy pay deal’
Workers at an oil and gas giant’s offshore LNG facility could walk away after the union pursued “unrealistic claims” on behalf of its members, an employers’ group says.
The Offshore Alliance appealed to the Fair Work Commission on Wednesday for the protected action ballot decision, stating via social media that Inpex Ichthys’ LNG operations off the coast of Western Australia had offered workers a dodgy wage deal.
The Australian Resources and Energy Employers Association said the alliance’s claims could increase Inpex’s labor costs by about 50 to 60 per cent.
The union, made up of the Australian Workers’ Union and the Australian Maritime Union, also wants increased employee allowances, automatic promotions, guaranteed bonuses, Gold Class Qantas membership and company-funded FIFO travel around the world, the association said.
The association’s deputy chief executive, Tara Diamond, said the claims were disconnected from economic reality and risked setting an unsustainable precedent across the industry.
“These are not responsible or additional allegations,” he said in a statement Thursday.
“These are an attempt to significantly dismantle the pay and allowance structures of a workforce that is already among the highest-paid workforce in Australia.”
Inpex workers typically earn between $300,000 and $400,000 a year, and the union claims wages will average over $500,000 a year,” Ms Diamond said.
The association said the alliance’s negotiations and campaigns in the offshore LNG industry were becoming increasingly aggressive.
“This is a pattern of coordinated campaigning that combines unsustainable allegations with a deliberate escalation towards industrial action,” Ms Diamond said.
The union’s recent public statements have foreshadowed industrial action and threatened prolonged disruption and significant financial losses, drawing comparisons to previous offshore disputes.
“The industry has seen this playbook before,” Ms. Diamond said.
When conflicts escalate, the effects are reflected in production, supply chains and the broader economy.
The association said the timing of the possible strike increased the risk of shortages.
“At a time when global energy demand is increasing and there are ongoing fuel supply and pricing pressures, maintaining stable and reliable operations is critical,” Ms. Diamond said.
In a Facebook post, the Offshore Alliance said Inpex’s Enterprise Agreement proposal would erode job security, reduce wages and provide workers with substandard employment conditions.
“Our members will not pick up scraps from the bargaining table and we expect a 100 percent rejection of Inpex’s dodgy deal,” the union said.
“There is not a single bargaining claim that Inpex cannot meet.”
He said members would vote yes on protected industrial action.
Inpex and Australian Energy Producers have been contacted for comment.
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