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Unions OK strike threat against Woodside puts gas exports in jeopardy

Woodside workers will spook the world gas market if they follow through on their strike threat.

Woodside workers will spook the world gas market if they follow through on their strike threat. Photo: AAP

Unions at Woodside Energy Group’s North West Shelf offshore gas platforms have announced plans to strike as early as September 2, which could eventually disrupt shipments of liquefied natural gas (LNG) from top global exporter Australia.

Unions are required by Australian law to give companies seven days’ notice in advance of any industrial action, but can still elect to call off any action before then.

The strike threat escalates a long-running dispute between Woodside and workers over pay and conditions on its North West Shelf gas platforms, which feed Australia’s biggest LNG plant.

The Offshore Alliance, which combines the Maritime Union of Australia and Australian Workers’ Union, said in a Facebook post on Sunday it had “unanimously endorsed” giving Woodside seven days notice to strike if its bargaining claims are not met by close of business on August 23. That would mean a strike could start as soon as September 2.

“Woodside tried every tactic it could think of to avoid bargaining with its workers as a collective, but in the end the company failed to maintain the status quo it liked – one where what the company says goes,” Offshore Alliance spokesperson Brad Gandy said in a statement.

‘Leaving them with no choice’

“Offshore Alliance members don’t take industrial action lightly, but Woodside is really leaving them with little choice here.”

A spokesperson for Woodside declined to comment on Sunday’s update, referring to a previous statement that the company “continues to engage actively and constructively in the bargaining process”.

Some 99 per cent of Woodside workers granted unions permission to call a range of industrial action, including work stoppages, after Australia’s industrial umpire, the Fair Work Commission, gave permission for “protected industrial action” to go ahead.

The Offshore Alliance is also representing workers at Chevron’s Gorgon and Wheatstone LNG facilities. Workers there on Friday began voting on whether to grant unions permission to call for strike action, with the first results due by August 24 at the latest.

Together, Woodside and Chevron’s facilities supply about 10 per cent of the global LNG market, and concerns about a strike have spurred volatility in European gas prices over fears the move would fuel competition between Asian and European buyers for cargoes.

-AAP

 

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