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Unions refuse to back down on Chevron LNG strikes

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

Workers at Chevron’s LNG Gorgon and Wheatstone plants have rejected a recommendation to withdraw their strike plans for this Thursday as the gas giant accuses unions of withholding agreement on a new deal.

Members of the Offshore Alliance – a team-up of the Australian Workers Union and Maritime Union of Australia – voted overwhelmingly for the second time last week to push ahead with a restart of industrial action, despite Fair Work commissioner Bernie Riordan strongly advising the union to pull the action during final negotiations.

Hundreds of Chevron workers are set to restart rolling stoppages from this Thursday. 

The unions have accused Chevron of reneging on an in-principle deal by departing from recommendations from the commissioner on travel allowances and refusing to guarantee bonuses and allowances.

A Chevron Australia spokesman said it was “extremely disappointed” that workers had voted not to cancel the strikes, despite the umpire’s written recommendation.

The spokesman said Chevron and unions had accepted Mr Riordan’s clarifications to his original recommendations on issues in dispute, and had participated in meaningful negotiations last week.

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“Conversely, the unions have continued to add matters into dispute and are now withholding agreements on other matters on the basis that they do not have instruction from members, despite holding mass meetings with members on October 13 and 14,” the spokesman said.

“The union’s decision to ignore the recommendation to withdraw the protected industrial action notice while discussions are continuing is very concerning, unreasonable and undermines the considerable progress made prior to Chevron requesting the commission’s assistance last week.”

The Offshore Alliance on Sunday said that Chevron had urged workers on Friday to tell the unions what they wanted to do with the strike. By Sunday, 91 per cent of 410 voting members supported industrial action kicking off on Thursday – for the second time.

“Members have made it clear that they want Chevron to stop twisting the draft terms of our EBAs and are prepared to ramp up protected industrial action until our EBAs are properly sorted,” the alliance said.

“Members have also raised concerns about the need for Chevron to permanently exclude behavioural standards from level progression and want answers from Chevron about the perceived attack on members’ annual bonuses.

“The Offshore Alliance is fed up with the games Chevron and their lawyers are playing. This includes Chevron ‘accidentally’ trying to snip $4000 off our members’ field loading allowance. Just another accidental mistake, according to the Chevron lawyers.”

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Since an in-principle deal was reached last month, unions have complained about Chevron statements that it may not pay a global bonus worth some $20,000 to workers who are on enterprise agreements.

The parties are scheduled to attend mediation with Mr Riordan in Perth on Monday.

The industrial action on Thursday is understood to include the resumption of rolling one-hour stoppages and bans on mooring tankers or loading them with LNG or condensate.

David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

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