Talks between Chevron Corp. and labor unions in Australia resumed Friday morning, with workers threatening to begin strikes at liquefied natural gas export facilities in the afternoon.
The unions will begin strikes from 1 p.m. Perth time at Chevron’s Gorgon and Wheatstone liquefied natural gas export projects if there isn’t a breakthrough in discussions. The unions consider the package provided by Chevron underwhelming, with an official representing the workers on Thursday saying a deal is “very unlikely.”
Chevron’s “bargaining performance has been the most inept effort of any employer the Union has dealt with in the past 5 years and our members have had enough,” the Offshore Alliance, a group that represents two major unions, said in a post on Facebook.
“We will continue to work through the bargaining process as we seek outcomes that are in the interests of both employees and the company,” Chevron said in a statement Thursday. “We will also continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities.”
The possibility of strikes at some of Australia’s key liquefied natural gas plants has kept markets on edge for the past month. Chevron’s Gorgon and Wheatstone plants together supplied about 7% of the world’s LNG last year.
The unions will begin with partial strikes on Friday, then plans to ratchet them up to full 24-hour walkouts from Sept. 14 at Chevron’s facilities — Gorgon, Wheatstone Downstream and Wheatstone Platform. Still, members of the union at Chevron’s Wheatstone Downstream facility offered to work during strikes to ensure domestic gas supplies after it recently tripped offline.
The talks were taking place in Perth with Fair Work Commissioner Bernie Riordan, the regulator said.
